Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Addresses [Line Items] | ||
Document Type | 40-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Entity File Number | 001-39989 | |
Entity Registrant Name | PyroGenesis Canada Inc. | |
Entity Primary SIC Number | 3599 | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 1744, William St. Suite 200 | |
Entity Address, City or Town | Montréal | |
Entity Address, State or Province | QC | |
Entity Address, Postal Zip Code | H3J1R4 | |
City Area Code | 1-514 | |
Local Phone Number | 937-0002 | |
Annual Information Form | true | |
Audited Annual Financial Statements | true | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Central Index Key | 0001743344 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
ICFR Auditor Attestation Flag | false | |
Auditor Firm ID | 1232 | 85 |
Auditor Name | Raymond Chabot | KPMG LLP |
Auditor Location | Montréal, Canada | Montréal, Canada |
Business Contact [Member] | ||
Entity Addresses [Line Items] | ||
Contact Personnel Name | P. Peter Pascali |
Consolidated Statements of Fina
Consolidated Statements of Financial Position | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) |
Current assets | ||
Cash and cash equivalents [note 7] | $ 12,202,513 | $ 18,104,899 |
Accounts receivable [note 8] | 17,639,616 | 3,329,653 |
Costs and profits in excess of billings on uncompleted contracts [note 9] | 4,922,710 | 1,073,633 |
Inventory [note 24] | 887,590 | |
Investment tax credits receivable [note 10] | 256,513 | 567,059 |
Income taxes receivable | 117,029 | |
Current portion of deposits [note 13] | 1,328,452 | 1,421,246 |
Current portion of royalties receivable [note 12] | 311,111 | |
Contract assets | 375,789 | 694,301 |
Prepaid expenses | 717,661 | 145,996 |
Total current assets | 38,758,984 | 25,336,787 |
Non-current assets | ||
Deposits [note 13] | 248,756 | 301,341 |
Strategic investments [note 11] | 14,901,659 | 39,991,750 |
Property and equipment [note 14] | 3,712,937 | 2,529,570 |
Right-of-use assets [note 15] | 5,765,993 | 3,701,000 |
Royalties receivable [note 12] | 947,543 | 1,060,000 |
Investment tax credits receivable [note 10] | 705,316 | |
Intangible assets [note 16] | 2,774,198 | 905,614 |
Goodwill [note 17] | 2,660,607 | |
Total assets | 69,770,677 | 74,531,378 |
Current liabilities | ||
Accounts payable and accrued liabilities [note 18] | 10,069,177 | 4,708,051 |
Billings in excess of costs and profits on uncompleted contracts [note 19] | 9,400,231 | 6,592,972 |
Current portion of term loans [note 20] | 83,004 | 12,208 |
Current portion of lease liabilities [note 15] | 2,934,236 | 225,977 |
Balance due on business combination [note 5] | 2,242,503 | |
Income taxes payable | 23,048 | |
Total current liabilities | 24,752,199 | 11,539,208 |
Non-current liabilities | ||
Lease liabilities [note 15] | 2,389,729 | 2,762,565 |
Term loans [note 20] | 107,901 | 100,499 |
Balance due on business combination [note 5] | 1,709,700 | |
Deferred income taxes [note 31] | 42,394 | 706,000 |
Total liabilities | 29,001,923 | 15,108,272 |
Shareholders' equity [note 22] | ||
Common shares and warrants | 82,104,086 | 67,950,069 |
Contributed surplus | 19,879,055 | 10,480,310 |
Accumulated other comprehensive income | 3,444 | |
Deficit | (61,217,831) | (19,007,273) |
Total shareholders' equity | 40,768,754 | 59,423,106 |
Total liabilities and shareholders' equity | $ 69,770,677 | $ 74,531,378 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income (Loss) | ||
Revenues [note 6] | $ 31,068,350 | $ 17,775,029 |
Cost of sales and services [note 24] | 18,636,539 | 7,472,361 |
Gross profit | 12,431,811 | 10,302,668 |
Expenses | ||
Selling, general and administrative [note 24] | 27,237,135 | 12,334,553 |
Research and development, net [note 10] | 2,535,987 | (731,077) |
Total Expenses | 29,773,122 | 11,603,476 |
Net loss from operations | (17,341,311) | (1,300,808) |
Changes in fair value of strategic investments [note 11] | (21,426,218) | 44,626,698 |
Finance costs, net [note 25] | (404,370) | (524,074) |
Net earnings (loss) before income taxes | (39,171,899) | 42,801,816 |
Income taxes [note 31] | (739,960) | 1,033,412 |
Net earnings (loss) | (38,431,939) | 41,768,404 |
Items that will be reclassified subsequently to profit of loss | ||
Foreign currency translation gain on investments in foreign operations | 3,444 | |
Comprehensive income (loss) | $ (38,428,495) | $ 41,768,404 |
Earnings (loss) per share [note 26] | ||
Basic | $ (0.23) | $ 0.28 |
Diluted | $ (0.23) | $ 0.27 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity | Common shares and warrantsCAD ($)shares | Common shares and warrantsUSD ($)shares | Contributed SurplusCAD ($)shares | Equity portion of convertible debenturesCAD ($) | Accumulated other comprehensive income [member]CAD ($) | DeficitCAD ($) | CAD ($)shares |
Beginning balance at Dec. 31, 2019 | $ 47,073,243 | $ 6,679,730 | $ 401,760 | $ (60,237,656) | $ (6,082,923) | ||
Beginning balance (in shares) at Dec. 31, 2019 | shares | 141,303,451 | 141,303,451 | |||||
Shares issued upon public issuance [note 22] | $ 12,076,380 | $ 3,354,550 | 12,076,380 | ||||
Share issuance cost | (1,640,052) | $ (1,640,052) | |||||
Shares issued upon exercise of stock options [note 22] | $ 1,244,207 | $ (484,807) | |||||
Shares issued upon exercise of stock options [note 22] (in shares) | shares | 2,118,000 | 2,118,000 | (484,807) | 759,400 | |||
Shares issued upon exercise of share purchase warrants [note 22] | $ 5,623,323 | $ 7,060,617 | $ 5,623,323 | ||||
Issuance of convertible loan - equity component [note 22] | 98,422 | 98,422 | |||||
Conversion of loan into shares [note 21] | $ (925,982) | 98,422 | (827,560) | ||||
Conversion of loan into shares [note 21] (in shares) | shares | 3,225,000 | 3,225,000 | |||||
Conversion of debentures into shares [note 21] | $ 3,073,356 | (360,981) | 2,712,375 | ||||
Conversion of debentures into shares [note 21] (in shares) | shares | 3,369,375 | 3,369,375 | |||||
Share redemptions for cancellation [note 22] | $ (426,370) | $ (1,285,000) | (538,021) | $ (964,391) | |||
Share redemptions for cancellation [note 22] (in shares) | shares | 1,285,000 | ||||||
Equity component of convertible debentures [note 22] | $ 40,779 | $ (40,779) | |||||
Share-based payments | 4,244,608 | $ 4,244,608 | |||||
Net earnings (loss) | 41,768,404 | 41,768,404 | |||||
Ending balance at Dec. 31, 2020 | $ 67,950,069 | 10,480,310 | (19,007,273) | 59,423,106 | |||
Ending balance (in shares) at Dec. 31, 2020 | shares | 159,145,993 | 159,145,993 | |||||
Shares issued upon exercise of stock options [note 22] | $ 1,473,818 | (364,000) | 1,109,818 | ||||
Shares issued upon exercise of stock options [note 22] (in shares) | shares | 3,482,000 | 3,482,000 | |||||
Shares issued upon exercise of share purchase warrants [note 22] | $ 13,085,197 | 13,085,197 | |||||
Shares issued upon exercise of share purchase warrants [note 22] (in shares) | shares | 8,337,897 | 8,337,897 | |||||
Share redemptions for cancellation [note 22] | $ (404,998) | (3,778,619) | $ (4,183,617) | ||||
Share redemptions for cancellation [note 22] (in shares) | shares | (840,094) | (840,094) | 840,094 | ||||
Share-based payments | 9,762,745 | $ 9,762,745 | |||||
Other comprehensive income for the year | $ 3,444 | 3,444 | |||||
Net earnings (loss) | (38,431,939) | (38,431,939) | |||||
Ending balance at Dec. 31, 2021 | $ 82,104,086 | $ 19,879,055 | $ 3,444 | $ (61,217,831) | $ 40,768,754 | ||
Ending balance (in shares) at Dec. 31, 2021 | shares | 170,125,796 | 170,125,796 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Cash flows provided by (used in) Operating activities | ||
Net earnings (loss) | $ (38,431,939) | $ 41,768,404 |
Adjustments for: | ||
Share-based payments | 9,762,745 | 4,244,608 |
Depreciation of property and equipment | 356,103 | 63,118 |
Depreciation of right-of-use assets | 570,411 | 408,335 |
Amortization and write-off of intangible assets | 465,913 | 27,190 |
Amortization of contract assets | 513,572 | 161,291 |
Finance costs | 404,370 | 524,074 |
Change in fair value of investments | 21,426,218 | (44,626,698) |
Loss on disposal of property and equipment | 2,795 | |
Income taxes | (584,246) | 706,000 |
Unrealized foreign exchange | (10,623) | 30,704 |
Cash flows from (used in) operations before changes in balances related to operations | (5,527,476) | 3,309,821 |
Net change in balances related to operations [note 23] | (12,585,956) | (4,124,808) |
Cash flows provided by (used in) Operating activities | (18,113,432) | (814,987) |
Investing activities | ||
Additions to property and equipment | (1,502,231) | (702,111) |
Additions to intangible assets | (246,630) | (113,564) |
Purchase of strategic investments | (10,588,857) | (4,158,240) |
Disposal of strategic investments | 14,252,730 | 9,905,447 |
Business combination, net of cash acquired | 807,945 | |
Cash flows provided by (used in) Investing activities | 2,722,957 | 4,931,532 |
Financing activities | ||
Interest paid | (253,791) | (395,013) |
Repayment of term loans | (20,507) | (117,154) |
Repayment of scientific research and experimental development loans | (440,233) | |
Repayment of lease liabilities | (263,078) | (1,363,050) |
Repayment of promissory notes | (295,000) | |
Repayment of convertible debentures | (358,500) | |
Proceeds from issuance of convertible loans | 903,000 | |
Proceeds from issuance of other term loans | 195,919 | |
Proceeds from issuance of shares upon exercise of warrants | 13,085,197 | 5,623,322 |
Proceeds from issuance of shares upon exercise of stock options | 1,109,818 | 759,400 |
Proceeds from issuance of shares [note 22] | 12,076,380 | |
Share issue costs | (1,640,052) | |
Shares repurchased for cancellation | (4,183,617) | (964,391) |
Cash flows provided by (used in) Financing activities | 9,474,022 | 13,984,628 |
Effect of exchange rate changes on cash denominated in foreign currencies | 14,067 | (30,705) |
Net increase (decrease) in cash and cash equivalents | (5,902,386) | 18,070,468 |
Cash and cash equivalents - beginning of year | 18,104,899 | 34,431 |
Cash and cash equivalents - end of year | 12,202,513 | 18,104,899 |
Non-cash transactions: | ||
Purchase of intangible assets included in accounts payable | 81,693 | 113,826 |
Purchase of property and equipment included in accounts payable | 22,557 | 27,870 |
Addition to contract assets included in accounts payable | 195,060 | |
Settlement of accounts receivable on business acquisition | 1,744,400 | |
Accretion of balance purchase price payable | 110,203 | |
Accretion interest on royalties receivable | 132,809 | |
Accretion on term loan | 12,185 | |
Issuance of common shares upon exercise of convertible debentures | 2,695,500 | |
Issuance of common shares upon conversion of loan | 827,560 | |
Initial recognition of contract assets and commissions payables | 855,592 | |
Receivables | 892,609 | |
HPQ shares received in lieu of payment of accounts receivable | 395,514 | |
Fair value of HPQ warrants exercised | 9,181,250 | 337,500 |
Right-of-use assets | 2,157,796 | 366,566 |
Prepaid rent expense | (36,903) | |
Lease liabilities | $ 2,120,893 | $ 366,566 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2021 | |
Nature of operations | |
Nature of operations | 1. Nature of operations PyroGenesis Canada Inc. and its subsidiaries ( collectively, the “Company”), incorporated under the laws of the Canada Business Corporations Act, was formed on July 11, 2011. The Company owns patents of advanced waste treatment systems technology and designs, develops, manufactures and commercialises advanced plasma processes and sustainable solutions to reduce greenhouse gases. The Company is domiciled at 1744 William Street, Suite 200, Montreal, Quebec. The Company is publicly traded on the TSX Exchange under the Symbol “PYR” on NASDAQ in the USA under the symbol “PYR” and on the Frankfurt Stock Exchange (FSX) under the symbol “8PY”. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | |
Basis of preparation | 2. Basis of preparation (a) Statement of compliance These financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These financial statements were approved and authorized for issuance by the Board of Directors on March 31, 2022. (b) Functional and presentation currency These consolidated financial statements are presented in Canadian dollars, which is the Company’s functional currency. (c) Basis of measurement These financial statements have been prepared on the historical cost basis except for: (i) strategic investments which are accounted for at fair value, (ii) stock-based payment arrangements, which are measured at fair value on the grant date pursuant to IFRS 2, Share-based Payment; and (iii) lease liabilities, which are initially measured at the present value of minimum lease payments (d) Basis of consolidation For financial reporting purposes, subsidiaries are defined as entities controlled by the Company. The Company controls an entity when it has power over the investee; it is exposed to, or has rights to, variable returns from its involvement with the entity; and it has the ability to affect those returns through its power over the entity. In instances where the Company does not hold a majority of the voting rights, further analysis is performed to determine whether or not the Company has control of the entity. The Company is deemed to have control when, according to the terms of the shareholder’s and/or other agreements, it makes most of the decisions affecting relevant activities. These consolidated financial statements include the accounts of the Company and its subsidiaries, Drosrite International LLC and Pyro Green-Gas Inc.and its subsidiaries. Drosrite International LLC is owned by a member of the Company’s key management personnel and close member of the Chief Executive Officer (“CEO”) and controlling shareholder’s family and is deemed to be controlled by the Company. Pyro Green-Gas (formerly AirScience Technologies Inc. until the renaming on September 14, 2021) was acquired by the Company on August 11, 2021 (see note 5). All transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation. 2. Basis of preparation (continued) (d) Basis of consolidation (continued) The accounting policies set out below have been applied consistently in the preparation of the financial statements of all years presented. Finance costs and changes in fair value of strategic investments are excluded from the loss from operations in the consolidated statement of comprehensive income (loss). |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies (a) Business combinations Business combinations are accounted for using the acquisition method. Goodwill is measured as the excess of the fair value of the consideration transferred over the net recognized amount of the identifiable assets acquired and liabilities assumed, all measured at the acquisition date. The consideration transferred is measured as the net of the fair values of assets transferred, liabilities assumed, and equity instruments issued by the Company at the acquisition date, including any asset or liability resulting from a contingent consideration arrangement, in exchange of the acquiree. The obligation to pay the contingent consideration is classified as a liability, and measured as a financial instrument or as a provision. Changes in fair values that qualify as a measurement period adjustments of preliminary purchase price allocations are adjusted in the current period and such changes are applied on a retroactive basis. Acquisition costs that the Company incurs in connection with a business combination are recognized in profit or loss as incurred, except for costs associated with the issuance of debt or equity securities. (b) Revenue recognition Revenue from contracts is recognized for each performance obligation either over a period of time or at a point in time, depending on which method reflects the transfer of control of the goods and services underlying the particular performance obligation. i) Long-term contracts Long-term contracts involve made-to-order customized equipment and machines and are generally priced on a fixed fee basis. Under these contracts, the equipment or machines are made to a customer’s specifications and if a contract is terminated by the customer, the Company is entitled to the greater of the amounts invoiced at the termination date and the reimbursement of the costs incurred to date of termination, including a reasonable margin. Agreements that contain multiple deliverables require the Company to determine whether they contain separately identifiable performance obligations and to allocate the consideration received to each performance obligation. Revenue relating to long-term contracts is recognized over time based on the measure of progress determined by the Company’s efforts or inputs towards satisfying the performance obligation relative to the total expected inputs. The degree of completion is assessed based on the proportion of total costs and/or hours incurred to date, compared to total costs and/or hours anticipated to provide the service under the entire contract, excluding the effects of inputs that do not depict performance, e.g. uninstalled materials. For long-term contracts with uninstalled materials, the Company adjusts the transaction price and recognizes revenue on uninstalled materials to the extent of those costs incurred, i.e. at a zero percent profit margin, when certain conditions are met. Estimates are required to determine anticipated costs and/or hours on long-term contracts. A provision is made for the entire amount of expected loss, if any, in the period in which they are first determinable. 3. Significant accounting policies (continued) (b) Revenue recognition (continued) i) Long-term contracts (continued) Contract modifications are changes in scope and/or price that are approved by the parties to the contract. Approval may be written, oral or implied by customary business practices, and are legally enforceable. The Company accounts for modifications as a separate contract if the modifications add distinct goods or services that are priced commensurate with stand-alone selling prices or if the remaining goods or services are distinct from those already transferred, otherwise modifications are accounted for as part of the original contract. Costs and profits in excess of billings on uncompleted contracts and trade receivables are both rights to consideration in exchange for goods or services that the Company has transferred to a customer, however the classification depends on whether such right is only conditional on the passage of time (trade receivables) or if it is also conditional on something else (costs and profits in excess of billings on uncompleted contracts), such as the satisfaction of further performance obligations under the contract. Billings in excess of costs and profits on uncompleted contracts is the cumulative amount received and contractually receivable by the Company that exceeds the right to consideration resulting from the Company’s performance under a given contract. The costs to obtain long-term contracts such as sale commissions are recognized as Contract assets and recognized as selling expenses over time based on degree of completion of the related contract. ii) Sales of goods Revenue related to sales of goods, which may include powders and spare parts are measured based on the consideration specified in contracts with customers. The Company recognizes revenue at a point in time when it transfers control of the goods to the buyer. This is generally at the time the customer obtains legal title to the product and when it is physically transferred to the custody transfer point agreed with the customer. iii) Sale of intellectual property Sale of intellectual property is recognized at the date the recipient obtains control of the asset. Variable consideration related to the sale of intellectual property is recognized to the extent that it is highly probable that a reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. (c) Foreign currency translation i) Foreign currency transactions Revenue and expense transactions in foreign currencies are translated into Canadian dollars using the average exchange rates prevailing at the time of the transaction. Foreign currency balances are translated into Canadian dollars at year end exchange rates for monetary items and at historical rates for non-monetary items. Translation gains or losses are included in the determination of net earnings. ii) Foreign operations The assets and liabilities of foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of the reporting period. Revenue and expense items are translated at the average exchange rates for the period. Exchange differences arising from the translation process of foreign operations are recognized as foreign currency translation adjustments in other comprehensive income and accumulated in equity. 3. Significant accounting policies (continued) (d) Cash and cash equivalents Cash and cash equivalents are financial instruments readily convertible to a known amount of cash and not subject to a significant risk of changes in value. Cash equivalents include instruments with a maturity of three months or less from the date of acquisition and instruments with an original term longer than three months if there is no significant penalty for withdrawal within a three-month period from the date of acquisition. (e) Inventory Inventory is composed of spare parts for resale. Inventory is valued at the lower of cost and net realizable value. The cost of inventory is based on the first-in, first-out principle and comprises all costs of purchases. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and selling costs. (f) Deferred income taxes i) Current tax Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the date of the statements of financial position. ii) Deferred tax Deferred tax is provided using the liability method, providing for temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The temporary difference is not provided for if it arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date and whose implementation is expected over the period in which the deferred tax is realized or recovered. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be used. Deferred tax assets and liabilities are presented as non-current. Assets and liabilities are offset where the entity has a legally enforceable right to offset current tax assets and liabilities or deferred tax assets and liabilities, and the respective assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity or different taxable entities which intend to settle the liabilities and assets on a net basis. (g) Earnings (loss) per share The Company presents basic earnings (loss) per share data for its common shares. Basic loss per share is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding during the year. Diluted loss per share is computed similarly to basic earnings per share, except that the weighted average number of shares outstanding is increased to include shares from the assumed exercise of stock options and share purchase warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding share options and warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the year. Potential shares from all outstanding stock options and share purchase warrants are excluded from the calculation of diluted loss per share as their inclusion is considered anti-dilutive in years when a loss is incurred. 3. Significant accounting policies (continued) (h) Property and equipment Property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses if applicable. Cost includes expenditures that are directly attributable to the acquisition of the asset and bringing the asset into operation. Borrowing costs capitalized to asset under development represents the interest expense calculated under the effective interest method and does not include any fair value adjustments of investments designated at fair value through profit and loss. Government assistance and investment tax credits related to the purchase or development of property and equipment are recorded in reduction of the cost. When major parts of an item of property and equipment have different useful lives, they are accounted for separately. Property and equipment are depreciated from the acquisition date over their respective useful life. Depreciation of an asset under construction begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by the Company. Depreciation is calculated using the following methods and rates: Computer equipment Straight line over 3 years Machinery and equipment Straight line over 10 years Automobiles Straight line over 7 years Leasehold improvements Lesser of the lease term or the useful life ( 20 years ) Impairment – non-financial assets The carrying amounts of the Company’s non-financial assets are assessed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Impairment losses recognized in prior periods are assessed at each reporting date as to whether there are any indications that the previously recognized losses may no longer exist or may be decreased. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively if appropriate . (i) Leases Under IFRS 16, at inception, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration . The Company recognizes a right-of-use asset and a lease liability at the commencement date of the lease, i.e. the date the underlying asset is available for use. Right-of-use assets Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. Cost of right-of-use assets is comprised of: - the initial measurement amount of the lease liabilities recognized. - any lease payments made at or before the commencement date, less any lease incentives received; and 3. Significant accounting policies (continued) (i) Leases (continued) Right-of-use assets (continued) - any initial direct costs incurred; and - an estimate of costs to dismantle and remove the underlying asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease contract. Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset based on periods detailed above. The depreciation starts at the commencement date of the lease. Right-of-use assets are assessed for impairment whenever there is an indication that the right-of-use assets may be impaired. Lease liabilities Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date over the lease term. The present value of the lease payments is determined using the lessee’s incremental borrowing rate at the commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate is a function of the lessee’s incremental borrowing rate, the nature of the underlying asset, the location of the asset, the length of the lease and the currency of the lease contract. Generally, the Company uses the lessee’s incremental borrowing rate for the present value. At the commencement date, lease payments generally include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index (e.g. based on inflation index) or a specified rate, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising the option to terminate the lease. Lease payments also include amounts expected to be paid under residual value guarantees and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. Variable lease payments that do not depend on an index or a specified rate are not included in the measurement of lease liabilities but instead are recognized as expenses in the period in which the event or condition that triggers the payment occurs. After the commencement date, the carrying amount of lease liabilities is increased to reflect the accretion of interest and reduced to reflect lease payments made. In addition, the carrying amount of lease liabilities is remeasured when there is a change in future lease payments arising from a change in an index or specified rate, if there is a modification to the lease terms and conditions, a change in the estimate of the amount expected to be payable under residual value guarantee, or if the Company changes its assessment of whether it will exercise a termination, extension or purchase option. The remeasurement amount of the lease liabilities is recognized as an adjustment to the right-of-use asset, or in the profit and loss statement when the carrying amount of the right- of-use asset is reduced to zero. Classification and presentation of lease-related expenses Depreciation charge for right-of-use assets, expenses related to variable lease payments not included in the measurement of lease liabilities and loss (gain) related to lease modifications are allocated in the Company’s profit and loss statement based on their function within the Company, while interest expense on lease liabilities is presented within finance costs. 3. Significant accounting policies (continued) (i) Leases (continued) Cash flow classification Lease payments related to the principal portion of the lease liabilities are classified as cash flows from financing activities while lease payments related to the interest portion of the lease liabilities are classified as interest paid within cash flows from financing activities. Lease incentives received are classified as cash flows from investing activities. Variable lease payments not included in the measurement of lease liabilities are classified as cash flows from operating activities. (j) Government assistance and investment tax credits Investment tax credits are comprised of scientific research and experimental development tax credits. Government assistance and investment tax credits are recognized when there is reasonable assurance of their recovery and recorded as a reduction of the related expense or cost of the asset acquired, as applicable. Investment tax credits are subject to the customary approvals by the pertinent tax authorities. Adjustments required, if any, are reflected in the year when such assessments are received. (k) Intangible assets and Goodwill Intangible assets acquired separately are measured at cost on initial recognition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Identifiable intangible assets acquired in a business combination are recognized separately from goodwill if they meet the definition of an intangible asset and if their fair value can be measured reliably. The cost of these intangible assets equals their acquisition-date fair value. Subsequent to initial recognition, identifiable intangible assets acquired in a business combination are recorded at cost less accumulated amortization and impairment losses, if they are amortizable, otherwise only at cost net of accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful life of the asset and assessed for impairment whenever there is an indication of impairment. Amortization expense on the intangible assets with finite lives is recognized in the statements of comprehensive loss. Research costs are charged to comprehensive loss in the year they are incurred, net of related investment tax credits. Development costs are charged to comprehensive loss in the year they are incurred net of related investment tax credit s unless they meet specific criteria related to technical, market and financial feasibility in order to be recognized as intangible assets which include: - the technical feasibility of completing the intangible asset so that it will be available for use or sale; - the Company has the intention to complete and the ability to use or sell the asset; - the asset will generate future economic benefits; - the Company has the resources to complete the asset; and - ability to measure reliably the expenditure during development. Costs to establish patents for internally developed technology are considered development costs and are charged to comprehensive loss in the year they are incurred unless they meet specific criteria related to technical, market and financial feasibility. Patent costs include legal and other advisor fees to obtain patents, and patent application fees. 3 Significant accounting policies (continued) (k) Intangible assets and Goodwill (continued) Amortization of the development costs is calculated on a straight-line basis over the remaining useful life of the related patent and begins when development is complete. During the period of development, the asset is tested annually for impairment. Residual values and useful lives are reviewed at each reporting date. Amortization is calculated on a straight-line basis: Useful life Production backlog 30 months Patents and development costs 1 to 21 years Goodwill represents the future economic benefits arising from a business combination that are not individually identified and separately recognized. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized, but is tested for impairment annually or if there is an indication of impairment. Impairment losses recognized for goodwill cannot be reversed. Impairment testing of goodwill, other intangible assets, property and equipment and right-of-use assets For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of a related business combination and represents the lowest level within the Company at which management monitors goodwill. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of testing non-financial assets for impairment, management has identified one CGU. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of the CGU are allocated first to reduce the carrying amount of goodwill allocated to the units, and then to reduce the carrying amounts on a pro-rata basis of the other assets in the unit. (l) Employee benefits Share-based payments The Company applies a fair value-based method of accounting to all share-based payments. Employee and director stock options are measured at their fair value of each tranche on the grant date and recognized in its respective vesting period. Non-employee stock options are measured when the services are rendered by the consultant at the fair value of the services received, if the fair value can be measured reliably. In the case the fair value of the services cannot be measured reliably, the services are measured indirectly using the fair value of the equity instruments granted. If there are unidentifiable services, then they are measured at grant date. The cost of stock options is presented as share-based payment expense. On the exercise of stock options, share capital is credited for the consideration received and for the fair value amounts previously credited to contributed surplus. The Company uses the Black-Scholes option-pricing model to estimate the fair value of share-based payments. 3. Significant accounting policies (continued) (l) Employee benefits (continued) Deferred profit-sharing plan The Company established a yearly Deferred Profit-Sharing Plan (“DPSP”) for all eligible employees who have materially and significantly contributed to the prosperity and profits of the Company. The significance of any contribution of any employee to the prosperity and profits of the Company for purposes of eligibility in the DPSP is determined by the Board of Directors of the Company upon such relevant information as the Board, in its sole discretion, may find relevant. All related persons to the Company are excluded from participating in the DPSP. For all eligible employees, the Company is required to contribute to the DPSP out of the profits of the Company. The amount of the Company’s contribution will be such amount which, in the opinion of its Board of Directors, is warranted by the profits and overall financial position of the Company. During the year, the Company contributed $ Nil to the DPSP ($ Nil in 2020). Obligations for contributions to the DPSP are recognized as an employee benefit expense in the statement of comprehensive loss in the periods during which services are rendered by employees. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under the short-term incentive plan if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (m) Equity Instruments Issuance of equity instruments Incremental costs directly attributable to the issue of equity-classified shares are recognized as a deduction from the common shares and warrants, net of any tax effects. Extinguishing financial liabilities with equity instruments When equity instruments issued to a creditor to extinguish all or part of a financial liability are recognized initially, the Company measures them at the fair value of the equity instruments issued, unless that fair value cannot be reliably measured. If the fair value of the equity instruments issued cannot be reliably measured, then the equity instruments shall be measured to reflect the fair value of the financial liability extinguished. Contributed surplus Contributed surplus includes amounts related to equity-settled share-based payments until such equity instruments are exercised or settled, in which case the amounts are transferred to common shares or reversed upon forfeiture if not vested. It also includes the unexercised conversion option at the maturity of the convertible debentures. (n) Financial Instruments Financial assets are classified at amortized cost, fair value through profit or loss (“FVTPL”) or fair value through other comprehensive income (“FVOCI”) based on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of these assets. Assessment and decision on the business model approach used is an accounting judgment. 3. Significant accounting policies (continued) (n) Financial Instruments (continued) A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solel y payments of principal and interest on the principal amount outstanding. The Company includes in this category cash and cash equivalents, trade accounts receivable, other receivables, royalties receivable and deposits. A financial asset is measured at fair value through profit or loss (“FVTPL”) if: (a) Its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on the principal amount outstanding; or (b) It is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell; or (c) At initial recognition, it is irrevocably designated as measured at FVTPL when doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Company includes in this category strategic investments in equity instruments. Changes in fair value of financial liabilities attributable to changes in the entity’s own credit risk are to be presented in other comprehensive income unless they affect amounts recorded in income. All financial liabilities, other than those measured at fair value through profit or loss, are included in the financial liabilitie s measured at amortized cost. The Company includes in this category accounts payable and accrued liabilities, term loans, and convertible debentures. The balance due on business combination is measured at FVTPL. Recognition : The Company recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions of the instrument. Purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation o r convention in the market place (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to purchase or sell the asset. Initial measurement Financial assets and liabilities (other than financial assets at FVTPL) are measured initially at their fair value plus any directly attributable incremental costs of acquisition or issue. Financial assets and financial liabilities at FVTPL are recorded in the statement of financial position at fair value. All transaction costs for such instruments are recognized directly in profit or loss. Subsequent measurement Financial assets (other than financial assets at FVTPL) are measured at amortized cost using the effective interest method less any allowance for impairment. Gains and losses are recognized in profit or loss when the debt instruments are derecognized or impaired, as well as through the amortization process. 3. Significant accounting policies (continued) (n) Financial Instruments (continued) Subsequent measurement (continued) Financial liabilities are measured at amortized cost using the effective interest method except for derivatives and financial liabilities designated at FVTPL. Gains and losses are recognized in profit or loss when the liabilities are derecognized, as well as through the amortization process. Fair value measurement principles Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where financial assets and financial liabilities measured at fair value though profit or loss have a quoted price in an active market at the reporting date, the fair value is based on this price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from a stock exchange and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Securities traded on stock exchanges are stated at market price based on the closing price on the relevant valuation day. Derecognition A financial asset is derecognized where the rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset. The Company derecognizes a financial liability when the obligation under the liability is discharged, cancelled or expired. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Impairment of financial instruments The Company applies the “expected credit loss” (“ECL”) model to financial assets measured at amortized cost. The Company’s financial assets subject to this impairment model are cash and cash equivalents, trade and other receivables,royalties receivable and deposits. The trade accounts receivable have no financing component and have maturities of less than 12 months at amortized cost and, as such, t |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting judgments, estimates and assumptions | |
Significant accounting judgments, estimates and assumptions | 4. Significant accounting judgments, estimates and assumptions The preparation of financial statements requires management to make judgments, estimates and assumptions based on currently available information that affect the reported amounts of assets, liabilities and contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Estimates and judgments are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual results could differ from those estimated. By their very nature, these estimates are subject to measurement uncertainty and the effect of any changes in estimates on the financial statements of future periods could be material. In the process of applying the Company’s accounting policies, management has made the following judgments, estimates, and assumptions which have the most significant effect on the amounts recognized in the financial statements. 4. Significant accounting judgments, estimates and assumptions (continued) Critical judgments in applying accounting policies (a) Assessment of whether there is any indication that property and equipment, right-of-use assets and intangible asset may be impaired At each reporting date, the Company reviews the carrying amounts of its property and equipment, right-of-use assets and intangible assets with a finite useful life to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Management’s judgment is required in assessing whether there is any indication that an asset may be impaired. (b) Intangible assets The recognition of development costs as intangible assets requires judgments to determine whether the required criteria for recognition are met including management estimates of future economic benefits. (c) Sale of intellectual property The recognition of variable consideration related to the sale of intellectual property requires management’s judgments to determine whether it is highly probable that a reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. (d) Assessment of investment tax credits The investment tax credits are estimated by management based on quantitative and qualitative analysis and interpretation of various government programs, related restrictions, limitations, definitions, and eligibility conditions. Uncertainty over the eligibility and final assessment by taxation authorities of investment tax credits requires judgment. Management involves its technical staff and external specialists in determining if the expenditures meet the requirements of the different tax credit claims. Key sources of estimation uncertainty (e) Revenue recognition Revenue recognition for long-term contracts completion requires the use of estimates to determine the recorded amount of revenues, costs in excess of billings and billings in excess of costs and profits on uncompleted contracts. The determination of anticipated costs for completing a contract is based on estimates that can be affected by a variety of factors, including the cost of materials, labour and sub-contractors, as well as potential claims from customers and subcontractors. As risks and uncertainties are different for each project, the sources of variations between anticipated costs and actual costs incurred will also vary by project. The determination of estimates is based on the Company’s business practices as well as its historical experience. Estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised. Given this estimation process, it is possible that changes in future conditions could cause a material change in the recognized amount of revenues and costs and profits in excess of billings on uncompleted contracts and accrued expenses. 4. Significant accounting judgments, estimates and assumptions (continued) Key sources of estimation uncertainty (continued) (e) Revenue recognition (continued) Agreements that contain multiple deliverables require the use of judgment to determine whether they contain separately id entifiable performance obligations and to allocate the consideration received to each performance obligation. (f) Stock-based payments The Company uses the fair value method of valuing compensation cost associated with the Company’s stock option plan. Estimating fair value requires determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions of the grant. This also requires determining the most appropriate inputs to the valuation model including the expected life of the option and volatility. The assumptions and models are discussed in note 22. (g) Useful lives of property and equipment and intangible assets The Company estimates the useful lives of property and equipment based on the period over which the assets are expected to be available for use. The estimated useful lives of property and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear and legal or other limits on the use of the relevant assets. In addition, the estimation of the useful lives of property and equipment are based on management’s experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. Useful lives, depreciation rates and residual values are reviewed at least annually. (h) Impairment of non-financial assets and goodwill In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate (see Note 3 (k)). (i) Fair value of investments Where the fair values of investments recorded in the statement of financial position cannot be derived from active markets, they are determined using valuation techniques including the Black-Scholes models. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing the fair values. The judgments include considerations of inputs such as the expected volatility and the initial allocation of the consideration paid between the fair value of the common shares and warrants received. Should any of the inputs to these models or changes in assumptions about these factors occur, this could affect the reported fair value of the investments. (j) Right-of-use assets and lease liabilities In determining the carrying amount of the right-of-use asset and corresponding lease liabilities, assumptions include the non-cancellable term of the lease plus periods covered by an option to renew or purchase the leases, estimated useful lives of the related assets, and incremental borrowing rate. Renewal and purchase options are only included in the lease term if management is reasonably certain to renew. Management considers factors such as market conditions, comparable rental rates and similar property values. The Company is also required to estimate the incremental borrowing rate specific to each portfolio of leased assets with similar characteristics if the interest rate in the lease is not readily determined. Management determines the incremental borrowing rate using base rate for similar loans plus a risk premium. 4. Significant accounting judgments, estimates and assumptions (continued) Key sources of estimation uncertainty (continued) (k) Income taxes The Company has unused available tax losses, deductible temporary differences and investment tax credits. The Company recognizes deferred income tax assets for these unused tax losses and deductible temporary differences only to the extent that, in management’s opinion, it is probable that future taxable profit will be available against which these available tax losses and temporary differences can be utilized. The Company recognizes investment tax credits when it has reasonable assurance that it has complied with the conditions of the program and that the amounts will be realized (i.e. that it will generate future federal income taxes payable against which the tax credits can be applied). The Company’s projections of future taxable profit involve the use of significant assumptions and estimates with respect to a variety of factors, including future sales and operating expenses. There can be no assurance that the estimates and assumptions used in our projections of future taxable income will prove to be accurate predictions of the future, and in the event that our assessment of the recoverability of these deferred tax assets and investment tax credits changes in the future, a material increase or reduction in the carrying value of these deferred tax assets and investment tax credits could be required, with a corresponding charge to net earnings. (l) Business combinations Fair value of assets acquired and liabilities assumed in a business combination is estimated based on information available at the date of acquisition and involves considerable judgment in determining the fair values assigned to the identifiable assets acquired and liabilities assumed on acquisition. Among other things, the determination of these fair values involves the use of discounted cash flow analyses and estimated profit margins on contracts in progress. In addition, the determination of the contingent consideration due on the business combination is based on the estimations of the probability and timing of completing the predetermined milestones (see note 5); (m) COVID-19 pandemic The COVID-19 pandemic continues to cause significant financial market and social dislocation. The situation is dynamic with various cities and countries around the world responding in different ways to address the outbreak. While the Company has experienced the impact of the outbreak of the Coronavirus (COVID 19) on its operations, it had continued to operate during the current pandemic. During the year ended December 31, 2020, the Company recognized payroll subsidies totaling $775,967 principally under the Canadian Emergency Wage Subsidy program, which amount required estimation (see note 24). In the event of a prolonged continuation of the pandemic, it is not clear what the potential impact may be on the Company’s business, financial position and financial performance. |
Business combination (Imported)
Business combination (Imported) | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Business combination | 5. Business combination On August 11, 2021, the Company completed the acquisition of Pyro Green-Gas Inc. and its subsidiaries (formerly AirScience Technologies Inc. prior to its renaming on September 14, 2021), a Montreal-based company which offers technologies, equipment, and expertise in the area of biogas upgrading, as well as air pollution controls, for a maximum purchase price consideration of $4.4 million in cash, subject to customary post-closing adjustments. In addition, the Company settled a pre-existing loan receivable from Pyro Green-Gas Inc. of approximately $1.7 million. The transaction was executed essentially through a purchase of the entirety of the common class “A” shares of Pyro Green-Gas Inc. This acquisition enables the Company to springboard into the renewable natural gas market and provides an advantage compared to building its own operations. In addition, the Company will now have a presence in Italy and India, and the acquisition will provide potential synergies with the Company’s land-based waste destruction offerings. The purchase price will be paid upon the achievement of various contract and business-related milestones by Pyro Green-Gas Inc. The Company’s assessment is that these milestones will be realized at various moments during the next 30 months . The contingent consideration was estimated using a discount rate of 8% . 5. Business combination (continued) The acquisition was accounted for using the purchase method and the final allocation of the purchase price is as follows: December 31, 2021 Final $ Total consideration Consideration paid at closing 1 Contingent consideration 3,841,999 Consideration paid at closing and continent consideration 3,842,000 Settlement of pre-existing loan receivable from Pyro Green-Gas 1,744,400 5,586,400 Net assets acquired Current assets 1 5,186,086 ROU asset 477,608 Property and equipment 42,552 Intangible assets and Goodwill 2 4,780,607 Deferred income tax asset 79,360 Current liabilities (4,507,907) Non-current liabilities (471,906) 5,586,400 1 Includes $807,946 of cash and trade receivables with a net fair value of $3.3 million, including an allowance for doubtful accounts of $0.5 million. 2 The goodwill of $2.7 million recorded on the transaction is mainly attributable to the expected growth in biogas upgrading market and the expertise of the workforce, and it is not expected to be deductible for tax purposes . During the period ended December 31, 2021, the Company recognized revenue of $6.8 million and net earnings of $0.8 million related to the operations generated by Pyro Green-Gas Inc. since the acquisition date. In connection with this acquisition, the Company incurred acquisition-related costs of $0.1 million, recognized within Selling, General and Administrative expenses in the consolidated statement of comprehensive income (loss). The maximum purchase price consideration of $4,355,600 was discounted to $3,842,000 , at August 11, 2021 and an accretion expense of $110,203 was recognized in Net finance costs in the Consolidated Statement of Comprehensive Income for the year ended December 31, 2021. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenues. | |
Revenues | 6. Revenues Revenues by product line: The company’s revenues are generated primarily from the following: 2021 2020 $ $ Revenue from contracts with customers by product line: PUREVAP™ 6,138,111 4,163,059 DROSRITE™ 7,940,771 9,976,696 Development and support related to systems supplied to the U.S. Navy 7,522,809 1,425,883 Torch related sales 2,084,511 1,452,455 Biogas upgrading and pollution controls 6,800,090 — Other sales and services 582,058 756,936 31,068,350 17,775,029 The following is a summary of t he Company’s revenues by revenue recognition method: 2021 2020 $ $ Revenue from contracts with customers: Sales of goods under long-term contracts recognized over time 25,918,594 12,432,666 Sales of goods at a point of time 1,533,910 1,730,273 Other revenue: Sale of intellectual properties (i) 3,615,846 3,612,090 31,068,350 17,775,029 See note 32 for sales by geographic area. (i) Sale of intellectual properties During the year , the Company sold intellectual property to a subsidiary of a company in which it holds a strategic investment for a non-refundable fee of $3.3 million. Under the terms of the sale agreement, control of the intellectual property was transferred to the purchaser and the Company has no obligation to undertake activities that will significantly affect the intellectual property. The terms of the agreement also include royalty payments based on the percentage of sales. No royalty income was recognized at the time of the transaction. In September 2020, the Company sold intellectual property to a subsidiary of a company in which it holds a strategic investment for a non-refundable fee of $2.4 million. Under the terms of the sale agreement, control of the intellectual property was transferred to the purchaser and the Company has no obligation to undertake activities that will significantly affect the intellectual property. The terms of the agreement also include additional variable consideration that can be received based on the greater of 10% of sales made by the purchaser, and minimum royalties of $50,000 in 2021, $100,000 in 2022, $150,000 in 2023, and $200,000 in 2024 and every year thereafter (see note 11). The Company has also amended a previous agreement with a company in which it holds a strategic investment to reinstate minimum royalties that were previously waived by the Company related to a sale of intellectual property that occurred in 2016. The terms of this agreement also include additional variable consideration that can be received based on the greater of 10% of sales made by the purchaser, and minimum royalties of $200,000 in 2021 and $250,000 in 2022 and every year thereafter (see note 12). 6. Revenues (continued) The Company only recognizes variable consideration, including minimum royalties, arising from these agreements in the period(s) when it is highly probable that a reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Minimum royalties are recognized for the period the Company evaluates the collectability of the minimum royalties is probable, which the Company has estimated over four years. Transaction price allocated to remaining performance obligations As at December 31, 2021, revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially satisfied) at the reporting date is $43,458,148 (2020 - $29,999,009 ). Revenue will be recognized as the Company satisfies its performance obligations under long-term contracts, which is expected to occur over the next 3 years . |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
Cash and cash equivalents | 7. Cash and cash equivalents As at December 31, 2021 and 2020, there are no restrictions on cash and cash equivalents. Cash and cash equivalents include the following components: 2021 2020 $ $ Cash 3,568,561 10,104,899 Guaranteed investment certificates 8,633,952 8,000,000 Cash and cash equivalents 12,202,513 18,104,899 Guaranteed investment certificates are instruments issued by Canadian financial institutions and include $3,000,000 bearing interest at a rate of 0.37% , $5,000,000 bearing interest at a rate of 0.86% , and $633,952 bearing interest at a rate of 0.08% . These instruments are redeemable without penalty 60 days , 30 days and 30 days from the date of acquisition and mature in January 2022, September 2022, and December 2022. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable | |
Accounts receivable | 8. Accounts receivable Details of accounts receivable were as follows: December 31, December 31, 2021 2020 $ $ 1 – 30 days 2,260,428 309,362 31 – 60 days 44,838 226,713 61 – 90 days 6,855,822 253,141 Greater than 90 days 7,357,825 218,008 Total trade accounts receivable 16,518,913 1,007,224 Unbilled trade receivables — 1,132,911 Other receivables 1 270,536 931,041 Sales tax receivable 850,167 258,477 17,639,616 3,329,653 1 At December 31, 2020 comprised mainly of an amount of $893,000 to be received upon the sale of HPQ concluded prior to year end. As at December 31, 2021 the allowance for expected credit loss is $520,000 (2020 - $Nil ), which was included through the business combination and has not changed throughout the period. |
Costs and profits in excess of
Costs and profits in excess of billings on uncompleted contracts | 12 Months Ended |
Dec. 31, 2021 | |
Costs and profits in excess of billings on uncompleted contracts | |
Costs and profits in excess of billings on uncompleted contracts | 9. Costs and profits in excess of billings on uncompleted contracts As at December 31, 2021, the Company had fourteen contracts with total billings of $16,676,700 which were less than total costs incurred and had recognized cumulative revenue of $21,599,410 since those projects began. This compares with seven contracts with total billings of $8,378,093 which were less than total costs incurred and had recognized cumulative revenue of $9,451,726 as at December 31, 2020. Changes in costs and profits in excess of billings on uncompleted contracts during the year are explained by $983,891 (2020 - $93,415 ) recognized at the beginning of the year being transferred to accounts receivable, and $4,832,968 (2020 - $1,044,072 ) resulting from changes in the measure of progress. |
Investment Tax Credits
Investment Tax Credits | 12 Months Ended |
Dec. 31, 2021 | |
Investment tax credits. | |
Investment tax credits | 10. Investment tax credits An amount recognized in 2021 included $202,472 (2020 - $131,871 ) of investment tax credits earned in the year, as well as ($706,000) of investment tax credits earned in prior years that no longer met the criteria for recognition in 2021. $148,695 (2020 - $18,420 ) of the investment tax credits recognized in the year was recorded against cost of sales and services, ($684,709) (2020 - $1,141,468 ) against research and development expenses and $32,486 (2020 - $30,000 ) against selling general and administrative expenses. Eligible scientific research and experimental development (“SR&ED”) expenses for the year amounted to $2,000,853 (2020 – $775,824 ) less investment tax credits of ($684,709) (2020 – $1,141,468 ), less gov ernment grants of $149,575 (2020 – $365,433 ) totalling $ 2,535,987 (2020 – ($731,077) ). |
Strategic investments
Strategic investments | 12 Months Ended |
Dec. 31, 2021 | |
Strategic investments. | |
Strategic investments | 11. Strategic investments December 31, December 31, 2021 2020 $ $ Beauce Gold Fields (“BGF”) shares – level 1 123,095 123,095 HPQ Silicon Resources Inc. (“HPQ”) shares - level 1 12,306,196 16,489,220 HPQ warrants – level 3 2,472,368 23,379,435 14,901,659 39,991,750 The change in the strategic investments is summarized as follows: (“BGF”) shares – level 1 (“HPQ”) shares - level 1 HPQ warrants – level 3 Quantity $ Quantity $ Quantity $ Balance, December 31, 2019 1,025,794 133,354 18,450,000 1,476,000 17,750,000 — Additions — — 7,887,000 3,395,742 5,200,000 560,000 Received in lieu of payment of services rendered — — 4,394,600 395,514 4,394,600 — Exercised — — 1,500,000 540,000 (1,500,000) (337,500) Disposed — — (17,241,400) (10,798,056) — — Change in the fair value — (10,259) — 21,480,020 — 23,156,935 Balance, December 31, 2020 1,025,794 123,095 14,990,200 16,489,220 25,844,600 23,379,435 Additions — — 8,268,000 8,070,109 — — Exercised — — 16,250,000 11,700,000 (16,250,000) (9,181,250) Disposed — — (12,755,600) (14,252,732) — — Change in the fair value — — — (9,700,401) — (11,725,817) Balance, December 31, 2021 1,025,794 123,095 26,752,600 12,306,196 9,594,600 2,472,368 11. Strategic investments (continued) The Company owns 9.64% on a fully diluted basis of HPQ as at December 31, 2021 (2020 – 11.55% ) and has other business transactions with this entity– see note 12. The following table sets out the details and activity of the HPQ warrants: Number of Number of warrants warrants Exercise Expiry date Dec. 31, 2020 Additions Exercised Dec. 31, 2021 price ($) August 21, 2021 16,250,000 — (16,250,000) — 0.16 April 29, 2023 1,200,000 — — 1,200,000 0.10 June 2, 2023 4,394,600 — — 4,394,600 0.10 September 3, 2023 4,000,000 — — 4,000,000 0.61 25,844,600 — (16,250,000) 9,594,600 2021 Transactions 12,755,600 HPQ common shares were disposed for cash amounts totaling $14,252,732 resulting in a realized gain of $9,893,900 . 16,250,000 shares purchase warrants were exercised in cash for a total amount of $2,518,750 . An amount of $9,181,250 was transferred to the share value on the exercise of the warrants. 8,268,000 common shares of HPQ were purchased in cash for an amount of $8,070,109 . 2020 Transactions 1,200,000 common shares and 1,200,000 warrants of HPQ were purchased in cash for an amount of $60,000 in April 2020. 4,394,600 common shares of HPQ and 4,394,600 warrants of HPQ were received in May 2020 to settle trade receivables from HPQ in the amount of $395,414 . At the transaction date, this non-monetary transaction was measured at the fair value of the trade receivables. 4,000,000 common shares and 4,000,000 warrants were purchased in cash for an amount of $2,400,000 in September 2020. 2,687,000 common shares of HPQ were purchased in cash for an amount of $1,495,742 and 16,429,400 common shares of HPQ were disposed for an amount of $10,798,056 . The disposal of the common shares of HPQ in 2020 had resulted in a realized gain of $6,773,512 . 1,500,000 HPQ warrants were exercised in cash for an amount of $202,500 in December 2020. At inception, the fair value of t he HPQ warrants purchased in 2020 was measured using the Black-Scholes option pricing model using the following assumptions: Number of warrants 1,200,000 4,394,600 4,000,000 Date of issuance April 29, 2020 June 2, 2020 Sept. 3, 2020 Exercise price ($) 0.10 0.10 0.61 Assumptions under the Back Sholes model: Fair value of the shares ($) 0.04 1.05 1.05 Risk free interest rate (%) 0.30 0.20 0.20 Expected volatility (%) 97.45 114.80 112.52 Expected dividend yield Contractual remaining life (number of months) 36 29 32 11. Strategic investments (continued) 2020 Transactions (continued) As at December 31, 2021 and 2020, the fair value of the HPQ warrants was measured using the Black-Scholes option pricing model using the following assumptions: 2021 2020 Number of warrants 1,200,000 4,394,600 4,000,000 1,200,000 4,394,600 4,000,000 Date of issuance April 29, 2020 June 2, 2020 Sept. 3, 2020 April 29, 2020 June 2, 2020 Sept. 3, 2020 Exercise price ($) 0.10 0.10 0.61 0.10 0.10 0.61 Assumptions under the Back Sholes model: Fair value of the shares ($) 0.46 0.46 0.46 1.05 1.05 1.05 Risk free interest rate (%) 1.22 1.22 1.22 0.2 0.2 0.2 Expected volatility (%) 89.88 94.01 110.47 115.3 114.8 112.52 Expected dividend yield Contractual remaining life (in months) 19 20 23 28 29 32 As at December 31, 2021, a gain from initial recognition of the warrants of $510,573 ( $859,998 – 2020) has been deferred off balance sheet until realized. |
Royalties receivable
Royalties receivable | 12 Months Ended |
Dec. 31, 2021 | |
Royalties receivable | |
Royalties receivable | 12. Royalties receivable December 31 December 31 2021 2020 $ $ Opening balance 1,060,000 — Accretion interest 132,809 — Royalties recognized during the year 450,000 1,600,000 Discounting (134,155) (390,000) Amounts received during the year (250,000) (150,000) Balance at end of the year 1,258,654 1,060,000 Current portion 311,111 — Non-current portion 947,543 1,060,000 1,258,654 1,060,000 The Company sold intellectual property to HPQ Silicon Resources Inc. (“HPQ”) in 2016 (“HPQ 2016 contract”) and its wholly owned subsidiary, HPQ Nano Silicon Powders Inc. in 2020 (“HPQ Nano contract”). In addition, in 2021 the Company sold intellectual property to HPQ Silica Polvere Inc. (“HPQ Polvere contract”), a wholly owned subsidiary of HPQ. The terms of those sales contracts include, in addition to the purchase price amounts already received of $1,000,000 in 2016 and $2,400,000 in 2020 and $3,300,000 in 2021, respectively, the following variable consideration in the form of royalty payments: HPQ 2016 contract: Royalties are 10% of net sales, with minimum payments of $200,000 in 2021 and $250,000 in 2022 and every year thereafter. Payment is due no later than 30 days after the year end of HPQ Silicon Resources Inc. An amount of $200,000 has been received under this agreement in 2021 ($ 150,000 was received in 2020). 12. Royalties receivable (continued) HPQ Nano contract: Royalties are 10% of net sales, with minimum payments of $50,000 in 2021, $100,000 in 2022, $150,000 in 2023, and $200,000 in 2024 and every year thereafter. Payments are due no later than 10 days after the year end of HPQ Nano Silicon Powders Inc. An amount of $50,000 has been received under this agreement in 2021. HPQ Polvere contract: Royalties are 10% of net sales with minimum payments of $50,000 in 2023, $100,000 in 2024, $150,000 in 2025 and $200,000 in 2026 and every year thereafter. Royalty payments are limited to the total net sales for the period. Payments are due no later than 10 days after the year end of HPQ Silica Polvere Inc. During the year ended December 31, 2021, the Company recognized an additional $250,000 and $200,000 for the HPQ 2016 contract and HPQ Nano contracts, respectively, of royalties receivable, which have been discounted using 12.5% discount rate. See note 6. During the year ended December 31, 2020, the Company recognized $1,100,000 and $500,000 for the HPQ 2016 and HPQ Nano contracts, respectively, of royalties receivable, which amounts have been discounted using a 12.5% rate. See note 6. The HPQ Nano contract and the HPQ Polvere contract each provide the Company with the option to convert, at any time, the future royalties that would be owed to it into a 50% equity stake in HPQ Nano Silicon Powders Inc. and HPQ Silica Polvere Inc., respectively. Each option is considered an embedded derivative that is initially measured at fair value and subsequently remeasured at fair value at each reporting period. The Company determined that the embedded derivatives had a fair value of $Nil at the inception of the contracts and $Nil at each of the reporting dates. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Deposits | 13. Deposits December 31 December 31 2021 2020 $ $ Current portion: Suppliers 1,236,211 1,421,246 Security deposit on leased premises 92,241 — Total current 1,328,452 1,421,246 Non-current portion: Suppliers 1,952 1,099 Security deposit on leased premises 246,804 300,242 Total non-current 248,756 301,341 Total Deposits 1,577,208 1,722,587 |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment. | |
Property and equipment | 14. Property and equipment Machinery Equipment Computer and Leasehold under equipment equipment Automobiles improvements construction Total $ $ $ $ $ $ Cost Balance at December 31, 2019 521,988 1,621,899 21,912 165,006 1,671,962 4,002,767 Additions 27,671 — 306,164 15,895 268,272 618,002 Impairment — — (21,912) — — (21,912) Balance at December 31, 2020 549,659 1,621,899 306,164 180,901 1,940,234 4,598,857 Acquired through business combination 13,585 28,967 — — — 42,552 Additions 245,984 384,092 30,495 752,204 84,143 1,496,918 Balance at December 31, 2021 809,228 2,034,958 336,659 933,105 2,024,377 6,138,327 Accumulated depreciation Balance at December 31, 2019 491,906 1,421,613 18,782 92,985 — 2,025,286 Depreciation 17,206 20,029 22,083 3,800 — 63,118 Impairment — — (19,117) — — (19,117) Balance at December 31, 2020 509,112 1,441,642 21,748 96,785 — 2,069,287 Depreciation 88,410 182,739 59,959 24,995 — 356,103 Balance at December 31, 2021 597,522 1,624,381 81,707 121,780 — 2,425,390 Carrying amounts Balance at December 31, 2020 40,547 180,257 284,416 84,116 1,940,234 2,529,570 Balance at December 31, 2021 211,706 410,577 254,952 811,325 2,024,377 3,712,937 Equipment under construction includes the leasehold improvements of a clean room and the costs related to buildi ng the new Plasma Powder Production equipment. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 15. Leases The Company has entered into lease contracts mainly for buildings and computer equipment, which expire at various dates through the year 2036. Some leases have extension or purchase options for various terms. Some lease payments are based on changes in price indices. The lease contracts do not impose any financial covenants. As of January 1, 2020, a lease for rent of a property with a trust whose beneficiary is the controlling shareholder and CEO of the Company was modified to amend the lease term, fix the annual rent increase at a rate of 2% , exercise the option to extend the term of the lease for five years and prepay the rent amount of $1,178,530 , which was presented against the lease liability. At the date of modification, the lease liability was remeasured and an amount of $366,566 was recorded as an adjustment to the right-of-use asset. The lease liability was recalculated using a discount rate of 4% . As at December 31, 2020, the right-of-use asset and the lease liabilities related to this lease amount to $1,328,557 and $221,496 respectively (2019 - $1,350,487 and 1,218,958 ). In 2020, the variable components of the leases which are not included in the lease liabilities under IFRS 16, comprise property taxes for an amount of $258,042 (2019 - $266,581 ) which were charged to the Company. In return the trust agreed to convert the 2020 Convertible loan approximately one year before its due date. 15. Leases (continued) a) Right-of-use assets Land and Computer building equipment Total $ $ $ Balance at January 1, 2020 3,724,696 18,073 3,742,769 Remeasurement of lease liabilities 366,566 — 366,566 Depreciation (402,947) (5,388) (408,335) Balance at December 31, 2020 3,688,315 12,685 3,701,000 Addition - business combination 477,608 — 477,608 Addition 2,157,796 — 2,157,796 Depreciation (566,182) (4,228) (570,411) Balance at December 31, 2021 5,757,537 8,457 5,765,993 b) The table below summarizes changes to the lease liabilities: $ Balance at January 1, 2020 3,985,026 Remeasurement 366,566 Payments (1,363,050) Balance at December 31, 2020 2,988,542 Addition - business acquisition 477,608 Additions - other 2,120,893 Payments (263,078) Balance at December 31, 2021 5,323,965 Current portion 2,934,236 Non-current portion 2,389,729 5,323,965 c) Amount recognized in the statement of comprehensive loss: 2021 2020 $ $ Depreciation of right-of-use assets 570,411 408,335 Interest on lease liabilities 307,691 211,666 Expense related to lease payments not included in the measurement of lease liabilities 178,707 118,476 d) Maturity analysis – contractual undiscounted cash flows of lease liabilities as at December 31, 2021 $ 2022 3,220,750 2023 353,380 2024 357,113 2025 332,296 2026 229,332 Thereafter 2,121,321 6,614,192 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets. | |
Intangible assets | 16. Intangible assets Production Development backlog Patents costs Total $ $ $ $ Cost Balance at December 31, 2019 — 572,486 244,871 817,357 Additions — 305,420 — 305,420 Write-off — (109,514) — (109,514) Balance at December 31, 2020 — 768,392 244,871 1,013,263 Acquired through business combination 2,120,000 — — 2,120,000 Additions — 214,497 — 214,497 Write-off — (85,544) — (85,544) Balance at December 31, 2021 2,120,000 897,345 244,871 3,262,216 Accumulated amortization Balance at December 31, 2019 — 47,443 33,016 80,459 Amortization — 10,682 16,508 27,190 Balance at December 31, 2020 — 58,125 49,524 107,649 Amortization 353,333 10,528 16,508 380,369 Balance at December 31, 2021 353,333 68,653 66,032 488,018 Carrying amounts Balance at December 31, 2020 — 710,267 195,347 905,614 Balance at December 31, 2021 1,766,667 828,692 178,839 2,774,198 The Company’s development costs have been incurred to develop plasma related technologies and the patents protect the design and specification of these technologies. |
Accounts payable and accrued li
Accounts payable and accrued liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accounts payable and accrued liabilities | |
Accounts payable and accrued liabilities | 17. Goodwill The Company tests goodwill for impairment annually, or more frequently when an indicator of impairment is identified. Goodwill is considered impaired if the recoverable amount is less than the carrying amount. The recoverable amount of an operating segment is determined based on value-in-use calculations, covering a detailed five-year forecast, followed by an extrapolation of expected cash flows for the remaining useful lives using a declining growth rate determined by management. The present value of the expected cash flows of the operating segment is determined by applying a suitable discount rate reflecting current market assessments of the time value of money and risks specific to the segment. For the purpose of impairment testing, goodwill is allocated to the sole operating segment, Pyro Green-Gas, which is expected to benefit from the synergies of the business combination in which the goodwill arises, and is compared to its recoverable value. At December 31, 2021, it was determined that the recoverable amounts exceed the carrying amount, and no impairment was required. The recoverable amount in the most recent impairment test performed was determined using a pre-tax discount rate of 8% and terminal growth rate of 2% . |
Billings in excess of costs and
Billings in excess of costs and profits on uncompleted contracts | 12 Months Ended |
Dec. 31, 2021 | |
Billings in excess of costs and profits on uncompleted contracts | |
Billings in excess of costs and profits on uncompleted contracts | 19. Billings in excess of costs and profits on uncompleted contracts The amount to date of costs incurred and recognized profits less recognized losses for construction projects in progress amounted to $21,834,137 (2020 - $6,831,326 ). Payments to date received were $31,234,368 on contracts in progress (2020 - $13,424,298 ). Changes in billings in excess of costs and profits on uncompleted contracts during the year are explained by $6,268,910 (2020 - $1,282,217 ) recognized at the beginning of the year being recognized as revenue, and an increas e of $9,076,169 (2020 - $4,790,536 ) resulting from cash received excluding amounts recognized as revenue. |
Term loans
Term loans | 12 Months Ended |
Dec. 31, 2021 | |
Term loans | |
Term loans | 20. Term loans Canada 2019 SR&ED 2018 SR&ED Other Term Other Term Emergency Business Other Term Tax Credit Tax Credit EDC Loan¹ Loans² Loans³ Account Loan 4 Loans 5 loan 6 loan 7 Total $ $ $ $ $ $ $ $ Balance, December 31, 2019 — — — — 110,933 185,331 199,736 496,000 Addition 157,058 38,861 — — — — — 195,919 Financing costs (83,119) — — — — — — (83,119) Accretion 1,861 — — — 4,267 40,902 14,264 61,294 Payments — (1,954) — — (115,200) (226,233) (214,000) (557,387) Balance, December 31, 2020 75,800 36,907 — — — — — 112,707 Assumed through business combination — 36,520 50,000 — — — 86,520 Accretion 12,185 — — — — — 12,185 Payments — (12,207) (8,300) — — — — (20,507) Balance, December 31, 2021 87,985 24,700 28,220 50,000 — — — 190,905 Less current portion — (13,084) (19,920) (50,000) — — — (83,004) Balance, December 31, 2021 87,985 11,616 8,300 — — — — 107,901 1 maturing in 2027, non-interest bearing, payable in equal instalments from July 2023 to June 2027 ² maturing October 23, 2023 bearing interest at a rate of 6.95% per annum, payable in monthly instalments of $1,200 secured by automobile (carrying amount of $23,749 as at December 31, 2021) 3 maturing in May 2023, payable in monthly instalments of $1,660 , bearing interest at 7.45% 4 loan bearing no interest and no minimum repayment, if repaid by December 2023 5 bore interest at 8% per annum, repaid July 2020. 6 bore interest at 16.68% , repaid July 2020. 7 bore interest at 16.68% , repaid May 2020. 20. Term loans (continued) EDC Loan On March 5, 2020 , the Company entered into a repayable contribution agreement up to $450,000 under the Regional Economic Growth through Innovation program from the Economic Development Agency of Canada (“EDC”). The contribution is repayable in 60 equal monthly instalments due and payable 24 months following the completion of the project. During the year ended December 31, 2020, the Company received contributions totaling $157,058 . The loan was discounted using the effective interest method. The effective interest rate on the loan is 15% . Canada Emergency Business Account ("CEBA") Loan The Company's subsidiary participated in the CEBA program whereby it obtained an interest free and partially forgivable loan. The loan bears no interest and no minimum repayment terms, and one third of the loan amount is forgiven if repaid by December 31, 2022. The unpaid balance, if any, at December 31, 2022 would be converted to a 24 month term loan bearing interest at 5% and be reimbursed entirely by December 31, 2024. In January 2022 the Government of Canada amended the program and the repayment date has been extended by 1 year, until December 31, 2023. |
Convertible debentures
Convertible debentures | 12 Months Ended |
Dec. 31, 2021 | |
Convertible debentures | |
Convertible debentures | 21. Convertible debentures 2020 Convertible 2018 Convertible loan debentures Total $ Balance at December 31, 2019 — 2,898,358 2,898,358 Liability component at issuance 804,578 — 804,578 Effective interest accretion 22,982 155,642 178,624 827,560 3,054,000 3,881,560 Repayment of debentures including accommodation fees, in cash — (358,500) (358,500) Conversion into common shares (827,560) (2,695,500) (3,523,060) Balance at December 31, 2020 — — — Balance at December 31, 2021 — — — 2020 Convertible loan On March 18, 2020, the Company closed a $903,000 non-brokered secured convertible loan (“2020 Convertible loan”) at 12% per annum, with a trust whose beneficiary is the controlling shareholder and CEO of the Company. The loan bore interest at the rate of 12% per annum, with interest payable in cash on a quarterly basis in arrears with an initial maturity date of September 17, 2021. The loan was convertible before maturity, in whole at anytime or in part from time to time at a conversion price of $0.28 at the option of the lender. The convertible loan was secured by a deed of hypothec charging on the universalities of movable assets. At the issuance date, the 2020 Convertible loan was recorded as follows: $ Liability component 804,578 Conversion option recognized in equity, net of transaction cost of $47,338 98,422 Net proceeds 903,000 On September 30, 2020, the 2020 Convertible loan was converted into 3,225,000 common shares. Upon conversion, the equity component of $98,422 was allocated to share capital. The conversion was performed in return for the modification of a lease agreement for rent of a property with the same trust whose beneficiary is the controlling shareholder and CEO of the Company (note 15). 21. Convertible debentures (continued) 2018 Convertible debentures On March 30, 2020, the Company reached an agreement to extend the maturity date of its $3,000,000 2018 convertible debentures to September 30, 2020, from the original maturity date of March 29, 2020. Under the terms of the agreement, the Company redeemed $300,000 (representing 10% of the principal amount), paid a onetime accommodation fee of $54,000 , and is no longer subject to any prepayment penalties going forward. Upon redemption, an amount of $40,779 corresponding to the equity component was reclassified to contributed surplus. At the date of modification, the fair value of the 2018 Convertible debentures was determined using estimated cash flows discounted using a market interest rate of 17.5% . At the remeasurement date, a residual amount of $16,875 representing the value of the conversion option equity component was classified in the shareholders’ Equity (Deficiency). Upon conversion of the debentures in May and June 2020, 3,369,375 common shares were issued and the equity component of $360,981 was classified in share capital. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' equity | |
Shareholders' equity | 22. Shareholders’ equity Common shares and warrants Authorized : The Company is authorized to issue an unlimited number of common shares without par value. Shares issued upon public issuance On November 3, 2020, the Company closed a bought-deal short form prospectus offering of 3,354,550 units at a price of $3.60 per unit for aggregate gross proceeds to the Company of $12,076,380 , including the full exercise of the over-allotment option. In connection with the offering, the Company paid issuance costs of $1,640,052 in cash and issued 191,414 compensation options. Each compensation option entitles the holder thereof to purchase one unit at a price of $3.60 until November 10, 2022. Each unit is comprised of one common share of the Company and one -half of one common share purchase warrant of the company. Each warrant entitles the holder to purchase one additional common share at an exercise price of $4.50 for a period of 24 months . Under the warrant indenture, the Company has the right to accelerate the expiry date of the warrants to the date that is 30 days after delivery of a notice (the “Acceleration Notice”) to the holders of warrants and the warrant agent confirming that the volume weighted average trading price of the Company’s common shares on the Toronto Stock Exchange is greater than $6.75 for 20 consecutive trading days (the “VWAP Requirement”). T he VWAP Requirement was met as of close of business March 10, 2021. The Company delivered the Acceleration Notice and indicated that the warrants will expire on April 14, 2021. Shares issued upon exercise of stock options, share purchase warrants and compensation options During the year ended December 31, 2021, 3,482,000 ( 2,118,000 - 2020) stock options and 8,146,483 ( 7,060,617 - 2020) share purchase warrants were exercised for net proceeds of $1,109,818 and $12,396,107 ( $759,400 and $5,623,323 – 2020) respectively. The amounts credited to share capital from the exercise of stock options include an ascribed value from contributed surplus of $364,000 ( $484,807 – 2020). In addition the 191,414 compensation options were also exercised for net proceeds of $689,090 . Conversion of loan into shares On September 30, 2020, the 2020 Convertible loan with a carrying value of $827,560 was converted into 3,225,000 common shares . Upon conversion, the liability component of $98,422 was transferred to share capital (note 21). 22. Shareholders’ equity (continued) Share redemptions for cancellation In fiscal 2019, the Company had been authorized to repurchase, for cancellation, on the open market, or subject to the approval of any securities authority by private agreements, between November 1,2019 and October 31, 2020, or at an earlier date if the Company concludes or cancels the offer, up to 6,7500,000 of its common Shares. In January 2021, the Company announced it had been authorized to repurchase 5,000,000 Common shares from January 14, 2021 to January 13, 2022. During the year 2020, the Company repurchased and cancelled 1,285,000 Common shares at a weighted average price of $0.75 , for a total cash consideration of $964,391 including commissions of $12,845 . The excess of the total consideration over the carrying amount of the shares, in the amount of $538,021 , was applied against deficit. During the year 2021, the Company repurchased and cancelled 840,094 Common shares at a weighted average price of $4.96 per share, for a total cash consideration of $4,183,617 including commissions of $ 16,678 . The excess of the total consideration over the carrying amount of the shares, in the amount of $3,778,619 was applied against deficit. The repurchases were made in the normal course of business at market prices through the TSX. The Company was under no obligation to repurchase its Common Shares as at December 31, 2021. Stock options The Company has a stock option plan authorizing the Board of Directors to grant options to directors, officers, employees and consultants to acquire common shares of the Company at a price computed by reference to the closing market price of the shares of the Company on the business day before the Company notifies the stock exchanges of the grant of the option. The number of shares which may be granted to any one person shall not exce ed 5% ( 2% for consultants) of total share capital over a twelve-month period. The following table sets out the activity in stock options: Weighted Number of average options exercise price $ Balance – December 31, 2019 8,438,000 0.37 Granted 2,810,000 4.23 Exercised (1) (2,118,000) 0.36 Forfeited (90,000) 1.02 Balance, December 31, 2020 9,040,000 1.57 Granted 2,970,000 4.55 Exercised (1) (3,482,000) 0.32 Forfeited (125,000) 4.41 Balance, December 31, 2021 8,403,000 3.10 (1) The weighted fair market value of the share price for options exercised in 2021 was $5.48 ( $1.22 in 2020). 22. Shareholders’ equity (continued) Grants in 2021 On December 30, 2021, the Company granted 100,000 stock options to a member of its Board of Directors The stock options have an exercise price of $3.61 per common share, vest immediately and are exercisable over a period of five (5) years. On December 17, 2021, the Company granted 1,920,000 stock options to the President and Chief Executive Officer of the Company. The stock options have an exercise price of $3.13 per common share, vest immediately and are exercisable over a period of five (5)years. On October 14, 2021, the Company granted 100,000 stock options to the Chief Financial Officer of the Company. The stock options have an exercise price of $5.04 per common share. The 100,000 options will vest as follows: 10 percent as of the day of the grant, 20 percent at the first anniversary of the date of the grant, 30 percent at the second anniversary of the date of the grant, and 40 percent at the third anniversary of the date of the grant and are exercisable over a period of five (5) years. On June 14, 2021, the Company granted 100,000 stock options to an officer of the Company. The stock options have an exercise price of $6.70 per common share. The 100,000 options will vest as follows: 25 percent at the date of the grant, 25 percent at the first anniversary of the date of grant, 25 percent at the second anniversary of the date of grant, and 25 percent at the third anniversary of the date of grant and are exercisable over a period of five (5) years. On June 1, 2021, the Company granted 200,000 stock options to a member of its Board of Directors. The stock options have an exercise price of $6.59 per common share. The 200,000 options will vest as follows: 25 percent at the date of the grant, 25 percent at the first anniversary of the date of grant, 25 percent at the second anniversary of the date of grant, and 25 percent at the third anniversary of the date of grant and are exercisable over a period of five (5) years. On April 6, 2021, the Company granted 150,000 stock options to the President and Chief Executive Officer of the Company, 100,000 and 200,000 stock options to two members of the Board of Directors and 100,000 stock options to an employee of the Company. The stock options have an exercise price of $8.47 per common share. Of these options, 250,000 will vest immediately, 200,000 options will vest as follows: 30 percent as of the day of the grant, 35 percent at the first anniversary of the date of the grant and 35 percent on the second anniversary of the date of the grant and the remaining 100,000 options will vest as follows: 10 percent as of the day of the grant, 20 percent at the first anniversary of the date of the grant, 30 percent at the second anniversary of the date of the grant, and 40 percent at the third anniversary of the date of the grant. All options mentioned above are exercisable over a period of five (5) years. Grants in 2020 On October 26, 2020, the Company announced that it granted stock options to acquire 200,000 common shares of the Company to a member of the Board of Directors, and 50,000 common shares to an executive officer of the Company. The stock options have an exercise price of $4.00 per common shares and are exercisable over a period of five (5) years. On July 16, 2020, the Company granted an aggregate of 1,700,000 stock options to its directors entitling them to purchase an aggregate of 1,700,000 common shares of the Company, at a price of $4.41 per common share. The 1,700,000 options will vest as follows: 25 percent at the date of the grant, 25 percent at the first anniversary of the date of grant, 25 percent at the second anniversary of the date of grant, and 25 percent at the third anniversary of the date of grant. The Company also granted an aggregate of 760,000 stock options to employees entitling them to purchase an aggregate of 760,000 common shares of the Company, at a price of $4.41 per common share. Of these options, 660,000 will vest as follows: 50 percent as of the date of grant and 50 percent at the first anniversary of the date of grant. The remaining 100,000 will vest as follows: 25 percent as of the date of grant, 25 percent at the first anniversary of the date of grant, 25 percent at the second anniversary of the date of grant and 25 percent at the third anniversary of the date of grant. All option grants disclosed above are exercisable for a period of five years. 22. Shareholders’ equity (continued) Grants in 2020 (continued) On January 2, 2020, the Company granted 100,000 stock options to a Board of Directors, in his capacity of Chair of the Audit Committee of the Company. The stock options have an exercise price of $0.45 per Common Shares, vest immediately and is exercisable over a period of five (5) years. The weighted average fair value of stock options granted for the year ended December 31, 2021 was $2.99 ( $2.88 in 2020) per option. The weighted average fair value of each option granted was estimated at the grant date for purposes of determining share-based payment expense using the Black-Scholes option pricing model based on the following weighted-average assumptions: Years ended December 31, 2021 2020 Number of options granted 2,970,000 2,810,000 Exercise price ($) 4.55 4.23 Fair value of each option under the Black Scholes pricing model ($) 2.99 2.88 Assumptions under the Black Scholes model: Fair value of the market share ($) 4.52 4.23 Risk free interest rate (%) 1.11 0.38 Expected volatility (%) 83.00 88.49 Expected dividend yield — — Expected life (number of months) 60 60 Forfeiture rate (%) — — The underlying expected volatility was determined by reference to historical data of the Company’s share price. No special features inherent to the stock options granted were incorporated into the measurement of fair value. 22. Shareholders’ equity (continued) As at December 31, 2021, the outstanding options, as issued under the stock option plan to directors, officers, employees and consultants for the purchases of one common share per option, are as follows: Number of Number of Number of stock stock stock Exercise options options options price Dec 31, 2020 Granted Exercised Forfeitures Dec 31, 2021 vested (1) per option Expiry date $ September 25, 2016 3,000,000 (3,000,000) — 0.18 Sept 25, 2021 November 3, 2017 2,420,000 (20,000) 2,400,000 2,400,000 0.58 Nov 3, 2022 May 10, 2018 250,000 (250,000) — 0.52 May 10, 2023 July 3, 2018 300,000 300,000 300,000 0.51 July 3, 2023 October 29, 2018 70,000 (30,000) 40,000 40,000 0.52 Oct 29, 2023 September 29, 2019 200,000 (100,000) 100,000 100,000 0.51 Sept 29, 2024 January 2, 2020 100,000 100,000 100,000 0.45 Jan 2, 2025 July 16, 2020 2,450,000 (82,000) (125,000) 2,243,000 1,343,000 4.41 Jul 16, 2025 October 26, 2020 250,000 250,000 125,000 4.00 Oct 26, 2025 April 6, 2021 — 550,000 550,000 320,000 8.47 Apr 6, 2026 June 1, 2021 — 200,000 200,000 50,000 6.59 June 1, 2026 June 14, 2021 — 100,000 100,000 25,000 6.70 June 14, 2026 October 14, 2021 — 100,000 100,000 10,000 5.04 Oct 14, 2026 December 17, 2021 — 1,920,000 1,920,000 1,920,000 3.13 Dec 17, 2026 December 30, 2021 — 100,000 100,000 100,000 3.61 Dec 30, 2026 9,040,000 2,970,000 (3,482,000) (125,000) 8,403,000 6,833,000 3.10 (1) At December 31, 2021, the weighted average exercise price for options outstanding which are exercisable was $2.59 . For the year ended December 31, 2021, a stock-based compensation expense of $9,762,745 (2020 - $4,244,608 ) was recorded in Selling, general and administrative expenses to the Consolidated Statements of Comprehensive income (loss). As at December 31, 2021, an amount of $2,719,354 (2020 - $3,904,882 ) remains to be amortized until October 2025 related to the grant of stock options. 22. Shareholders’ equity (continued) Share purchase warrants The following table reflects the activity in warrants during the years ended December 31, 2021 and the number of issued and outstanding share purchase warrants at December 31, 2021: Number of Number of warrants warrants Dec 31, Dec 31, Price per 2020 Issued Exercised Expired 2021 warrant Expiry date $ Issuance of units – September 28, 2018 3,448,276 (3,448,276) — 0.58 Jan 28, 2021 Issuance of units – October 19, 2018 100,000 (100,000) — 0.58 Feb 13, 2021 Issuance of units – May 15, 2019 1,355,500 (1,355,500) — 0.85 May 15, 2021 Issuance of units – May 28, 2019 750,000 (750,000) — 0.85 May 24, 2021 Issuance of units – June 19, 2019 500,000 (500,000) — 0.85 Jun 19, 2021 Issuance of units – October 25, 2019 225,000 (225,000) — 0.75 Oct 25, 2021 Issuance of units – November 10, 2020 1,677,275 (1,672,000) (5,275) — 4.50 Nov 10, 2022 1 Issuance of warrants – November 10, 2020 95,707 (95,707) — 4.50 Nov 10, 2022 1 8,151,758 — (8,146,483) (5,275) — 1.52 ¹ On March 10, 2021, the Company has delivered the Acceleration Notice to accelerate the expiry date of the warrants to April 14, 2021 issued on November 10, 2020 |
Supplemental disclosure of cash
Supplemental disclosure of cash flow information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental disclosure of cash flow information | |
Supplemental disclosure of cash flow information | 23. Supplemental disclosure of cash flow information 2021 2020 $ $ Accounts receivable (12,372,139) (2,622,018) Costs and profits in excess of billings on uncompleted contracts (3,849,077) (950,653) Inventory (839,352) — Investment tax credits receivable 1,015,862 (562,980) Royalties receivable (65,845) (1,060,000) Deposits 145,379 (1,394,160) Contract assets — (855,592) Prepaid expenses 39,111 (39,042) Accounts payable and accrued liabilities 1,953,208 (148,678) Billings in excess of costs and profits on uncompleted contracts 1,485,969 3,508,315 Income taxes (99,072) — (12,585,956) (4,124,808) |
Supplemental disclosure on comp
Supplemental disclosure on comprehensive income statement | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental disclosure on comprehensive income statement | |
Supplemental disclosure on comprehensive income statement | 24. Supplemental disclosure on comprehensive income statement The amount of inventories recognized in cost of sales is $326,279 for the year ended December 31, 2021 ( $Nil in 2020). The aggregate amortization and write-off of intangible assets expense for the year ended December 31, 2021 was $465,913 ( 2020 - $27,190 ) and was recorded in cost of sales and services. Depreciation on property and equipment amounted to $356,103 and ROU assets was $570,411 for the year ended December 31, 2021, as compared to (2020 - $63,118 and $408,335 respectively) and is recorded in selling, general and administrative. During the year ended December 31, 2021 costs to obtain long term contracts of $Nil (2020 - $161,219 ) were recognized to selling, general and administrative expenses. Employee benefits totaled $21,855,957 in the year ended December 31, 2021 (2020 - $11,801,314 ) and include share-based compensation of $9,762,745 (2020 - $4,244,608 ). The Company has been awarded various grants during the year, which were recognized when they became receivable. The grants, received in 2021, are unconditional and amounted to $226,420 (2020 - $419,661 ). An amount of $149,575 (2020 - $365,433 ) was recorded as a reduction to the related expenses in research and development, an amount of $76,845 (2020 - $54,228 ) was recorded as a reduction to the related expenses in selling, general and administrative. The Company in 2020 applied for an amount of $775,967 in wage subsidy under the CEWS program. An amount of $118,416 was recorded as a reduction to employee compensation under cost of sales and services, $504,339 was recorded as a reduction to employee compensation under selling, general and administrative expenses, and $153,212 was recorded as a reduction to employee compensation under research and development costs. |
Net finance costs
Net finance costs | 12 Months Ended |
Dec. 31, 2021 | |
Net finance costs | |
Net finance costs | 25. Net finance costs 2021 2020 $ $ Financial expenses Interest and fees on convertible debentures — 171,042 Interest accretion of convertible debentures — 182,700 Interest on term loans 99,960 20,957 Interest on lease liabilities 307,691 211,666 Interest accretion on promissory notes and on balance due on business combination 110,203 17,937 Penalties and other interest expenses 19,325 57,550 Capitalized borrowing costs on Equipment under construction — (137,778) 537,179 524,074 Financial income Accretion interest on royalty receivable (132,809) — Net finance costs 404,370 524,074 |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings (loss) per share | |
Earnings (loss) per share | 26. Earnings (loss) per share The following table provides a reconciliation between the number of basic and fully diluted shares outstanding as at December 31, 2021 and 2020: 2021 2020 $ $ Weighted daily average of Common shares 166,645,546 148,315,445 Dilutive effect of stock options — 5,375,592 Dilutive effect of warrants — 4,611,720 Weighted average number of diluted shares 166,645,546 158,302,757 Number of anti-dilutive stock options and warrants excluded from fully diluted earnings per share calculation 8,403,000 4,664,396 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Related party transactions | 27. Related party transactions During the year ended December 31, 2021 and 2020, the Company concluded the following transactions with related parties: In 2021, rent and property taxes were charged by a trust whose beneficiary is the controlling shareholder and CEO of the Company in the amount of $ 274,934 (2020 - $ 274,106 ). As of January 1, 2020, a lease for rental of a property with a trust whose beneficiary is the controlling shareholder and CEO of the Company was modified and extended for five years . At the date of modification, the lease liability was remeasured using a discount rate of 4% and an amount of $366,566 was recorded as an adjustment to the right-of-use asset. The modified agreement included a requirement to prepay the rent amount of $1,178,530 and the municipal tax amount of $260,000 . In return for the modification of the lease agreement, a 2020 convertible loan of $903,000 from a trust whose beneficiary is the controlling shareholder and CEO of the Company, was converted into 3,225,000 common shares of the Company. These expenses are recorded in captions cost of sales and selling and general in the statement of comprehensive income (loss). As at December 31, 2021 the right-of-use asset and the lease liabilities amount to $ 1,107,131 and $ Nil respectively (2020 - $ 1,328,557 and $ 221,496 ). An amount of $Nil (December 31, 2020 - $ 58,050 ), of interest payable was accrued on the 2020 convertible loan of $ 903,000 from a trust whose beneficiary is the controlling shareholder and CEO of the Company. A balance due to the controlling shareholder and CEO of the Company amounted to $144,506 (2020 - $72,188 ) is included in accounts payable and accrued liabilities. An amount of $ Nil (2020 - $17,937 ), of interest accretion was expensed in net financing costs on the loan of $295,000 from the controlling shareholder and CEO of the Company. The key management personnel of the Company are the members of the Board of Directors and certain officers. Total compensation to key management consisted of the following: 2021 2020 $ $ Salaries – key management 3,049,501 2,148,420 Pension contributions 59,377 18,529 Fees – Board of Directors 187,600 150,000 Share-based compensation – officers 6,182,573 1,989,144 Share-based compensation – Board of Directors 2,338,650 846,410 Other benefits – key management 237,903 544,402 Total compensation 12,055,604 5,696,905 |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | |
Financial instruments | 28. Financial instruments As part of its operations, the Company carries a number of financial instruments. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments except as otherwise disclosed. The Company's overall risk management program focuses on the unpredictability of the financial market and seeks to minimize potential adverse effects on the Company's financial performance. The Company does not use derivative financial instruments to hedge these risks. Foreign currency risk The Company enters into transactions denominated in US dollars for which the related revenues, expenses, accounts receivable and accounts payable and accrued liabilities balances are subject to exchange rate fluctuations. As at December 31, the Company's exposure to foreign exchange risk for amounts denominated in US dollars is as follows: 2021 2020 $ $ Cash 1,714,670 1,366,627 Accounts receivable 14,465,011 621,817 Accounts payable and accrued liabilities (1,023,999) (252,463) Total 15,155,682 1,735,981 Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Sensitivity analysis At December 31, 2021, if the US Dollar changes by 10% against the Canadian dollar with all other variables held constant, the impact on pre-tax gain or loss and equity for the year ended December 31, 2021 would have been $1,516,000 (December 31, 2020 - $174,000 ). Credit risk and credit concentration Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The maximum credit risk to which the Company is exposed as at December 31, 2021 represents the carrying amount of cash and cash equivalents, accounts receivable (except sales tax receivable), deposits and royalties receivable. Cash and cash equivalents, which only comprise guaranteed investment certificates redeemable on relatively short notice by the Company, are held with major reputable financial institutions. The Company manages its credit risk by performing credit assessments of its customers. The Company does not generally require collateral or other security from customers on accounts receivable. The Company believes that there is no unusual exposure associated with the collection of these receivables. During the year ended December 31, 2021, four customers accounted for 79% (December 31, 2020 – two customers for 79% ) of revenues from operations. 28. Financial instruments (continued) 2021 2020 % of total % of total Revenues revenues Revenues revenues $ % $ % Customer 1 7,308,191 24 9,523,353 53 Customer 2 7,019,953 23 4,444,022 26 Customer 3 6,417,373 21 — — Customer 4 3,551,900 11 — — Total 24,297,417 79 13,967,375 79 One customer accounted for 73% (December 31, 2020 – two customers for 69% ) of trade accounts receivable with amounts owing to the Company of $12,063,636 (2020 - $1,211,177 ), representing the Company's major credit risk exposure. Credit concentration is determined based on customers representing 10% or more of total revenues and/or total accounts receivable. The royalties receiv ables are due from a company in which the Company has a strategic investments. The Company does not have collateral or other security associated with the collection of this receivable. Fair value of financial instruments The fair value represents the amount that would be received for the sale of an asset or paid for the transfer of a liability in an orderly transaction between market participants at the measurement date. The fair value estimates are calculated at a specific date taking into consideration assumptions regarding the amounts, the timing of estimated future cash flows and discount rates. Accordingly, due to its approximate and subjective nature, the fair value must not be interpreted as being realizable in an immediate settlement of the financial instruments. There are three levels of fair value that reflect the significance of inputs used in determining fair values of financial instruments: Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 — inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 — inputs for the asset or liability that are not based on observable market data. The fair values of cash and cash equivalents, trade accounts receivable, deposits, accounts payable and accrued liabilities approximate their carrying amounts due to their short-term maturities. Investments in BGF and HPQ shares are valued at quoted market prices and are classified as Level 1. Royalties receivable are discounted according to their corresponding agreements and are classified as Level 2. Investments in HPQ warrants are valued using the Black-Scholes pricing model and are classified as Level 3. The fair value of the term loans and the balance due on business combination as at December 31, 2021 is determined using the discounted future cash flows method and management's estimates for market interest rates for similar issuances. Given their recent issuance, their fair market values correspond to their carrying amount. 28. Financial instruments (continued) Interest rate risk Interest rate risk is the risk that the value of a financial instrument might be adversely affected by a change in interest rates. Changes in market interest rates may have an effect on the cash flows associated with some financial assets and liabilities, known as cash flow risk, and on the fair value of other financial assets or liabilities, known as price risk, and on the fair value of investments or liabilities, known as price risks. The Company is exposed to a risk of fair value on cash equivalents, and term loans as those financial instruments bear interest at fixed rates. Price risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market price (other than those arising from foreign currency risk and interest risk), whether those changes are caused by factors specific to the individual financial instrument or its issuers or factors affecting all similar financial instruments traded in the market. The most significant exposure to the price risk for the Company arises from its investments in shares and warrants of public companies quoted on the TSXV Exchange. If equity prices had increased or decreased by 25% as at December 31, 2021, with all other variables held constant, the Company’s investments would have increased or decreased respectively, by approximately $4,042,000 (December 31, 2020 25% - $11,874,375 ). Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivery of cash or another financial asset. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. The following table summarizes the contractual amounts payable and maturities of financial liabilities and other liabilities as at December 31, 2021: Total Carrying contractual Less than value amount one year 2-3 years 4-5 years Over 5 years $ $ $ $ $ $ Accounts payable and accrued liabilities 10,069,177 10,069,177 10,069,177 — — — Term loans 190,905 263,232 85,731 67,561 62,823 47,117 Balance due on business combination 3,952,203 4,355,600 2,395,580 1,960,020 — — Lease liabilities 5,323,965 6,614,192 3,220,750 710,493 561,628 2,121,321 19,536,250 21,302,201 15,771,238 2,738,074 624,451 2,168,438 A standby letter of credit issued by the Company's subsidiary, in the amount of USD $66,300 ( $84,055 ) was outstanding at December 31, 2021. In addition, the subsidiary has a maximum available line of credit of $500,000 , expiring in January 2023. At December 31, 2021, $436,000 was drawn against this facility. |
Contingent liabilities
Contingent liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Contingent liabilities | |
Contingent liabilities | 29. Contingent liabilities The Company is currently a party to various legal proceedings. If management believes that a loss arising from these proceedings is probable and can reasonably be estimated, that amount of the loss is recorded. As additional information becomes available, any potential liability related to these proceedings is assessed and the estimates are revised, if necessary. Based on currently available information, management believes that the ultimate outcome of these proceedings, individually and in aggregate, will not have a material adverse effect on the Company’s financial position or overall trends in results of operations. The Company had received a government grant in prior years of approximately $800,000 to assist with the development of a new system of advanced waste treatment systems technology. The grant is potentially repayable at the rat e of 3% of any consideration received as a result of the project, for which funding has been received, to a maximum of the actual grant received. This repayment provision will remain in effect until May 30, 2024. The Company abandoned the project in 2011 and accordingly, no amount is expected to be repaid. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2021 | |
Capital management | |
Capital management | 30. Capital management The Company’s objectives in managing capital are: a) To ensure sufficient liquidity to support its current operations and execute its business plan; and b) To provide adequate return to the shareholders The Company’s primary objectives when managing capital is to ensure the Company continues as a going concern as well as to maintain optimal returns to shareholders and benefits for other stakeholders. The Company currently funds these requirements from cash flows from operations and with financing arrangements with third parties and shareholders. The Company is not subject to any externally imposed capital requirements. The Company monitors its working capital in order to meet its financial obligations. As at December 31, 2021, the Company’s working capital was $14,006,785 (2020 - $13,797,579 ). The management of capital includes shareholders’ equity for a total amount of $40,768,754 (2020 - $59,423,106 ) and term loans of $190,905 (2020 - $112,707 ), as well as cash and cash equivalents amounting to $12,202,513 (2020 - $18,104,899 ). Although there were no significant changes in the Company’s approach during the current and preceding fiscal year, in 2020 the Company was able to retire its term loans and convert its convertible debentures to common shares . In order to maintain or adjust capital structure, the Company may issue new shares, sell portions of its strategic investment and periodically purchase its own shares on the open market. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes | |
Income taxes | 31. Income taxes a) Income tax expenses is comprised of the following: 2021 2020 $ $ Current tax Current year (155,714) 327,412 Deferred tax Origination and reversal of temporary differences (5,095,595) 6,816,080 Recognition of previously unrecognized tax assets — (170,082) Change in unrecognized deductible temporary differences 4,511,349 (5,939,998) (584,246) 706,000 Income tax expense (recovery) (739,960) 1,033,412 b) Reconciliation of effective tax rate 2021 2020 $ $ Income (loss) before income taxes (39,171,899) 42,801,816 Income tax rates 26.5 % 26.5 % Income tax expense (recovery) at the combined basic Federal and Provincial tax rates (10,380,553) 11,342,481 Permanent differences 5,079,805 (5,072,219) Tax rate changes 8,334 37,443 Prior year adjustment 60,533 835,787 Recognition of previously unrecognized tax assets — (170,082) Change in unrecognized deductible temporary differences 4,511,349 (5,939,998) Other (19,428) — Income tax expense (recovery) (739,960) 1,033,412 The applicable statutory tax rates are 26.5% in 2021 and 26.5% in 2020. The Company's applicable tax rate is the Canadian combined rates applicable in the jurisdiction in which the Company operates. 31. Income taxes (continued) c) Deferred tax assets and liabilities Recognized deferred tax assets and liabilities: As at December 31, 2021 and 2020, recognized deferred tax assets and liabilities are attributable to the following : Assets Liabilities Net 2021 2020 2021 2020 2021 2020 $ $ $ $ $ $ Non-capital losses carried forward 1,705,073 4,982,328 — — 1,705,073 4,982,328 Strategic investments — — (656,507) (4,919,499) (656,507) (4,919,499) Investment tax credits — — — (273,854) — (273,854) Royalty receivable — — (333,543) (280,900) (333,543) (280,900) Property and equipment — — (147,127) (25,273) (147,127) (25,273) Intangibles — — (468,167) — (468,167) — Deferred income — — (21,000) — (21,000) — Right-of-use assets net of liabilities — — (121,123) (188,802) (121,123) (188,802) Tax assets (liabilities) 1,705,073 4,982,328 (1,747,467) (5,688,328) (42,394) (706,000) Set off of tax (1,705,073) (4,982,328) 1,705,073 4,982,328 — — Net tax assets (liabilities) — — (42,394) (706,000) (42,394) (706,000) Deferred taxes from temporary differences and unused tax losses and tax credits are summarized as follows: Recognized Recognized Recognized in January 1, in profit or December in profit or business December 2020 loss 31, 2020 loss combination 31, 2021 $ $ $ $ $ $ Deferred tax assets (liabilities) Property and equipment — — — 621 (2,840) (2,219) Intangible assets — — — 93,583 (559,949) (466,366) Deferred income — — — (21,000) — (21,000) Non-capital losses carried forward — — — (194,958) 642,149 447,191 Investment tax credit — (706,000) (706,000) 706,000 — — — (706,000) (706,000) 584,246 79,360 (42,394) 31. Income taxes (continued) As at December 31, 2021 and 2020, the amounts and expiry dates of tax attributes and temporary differences for which no deferred tax assets were recognized are as follows: December 31, 2021 December 31, 2020 Federal Provincial Federal Provincial $ $ $ $ Research and development expenses, Without time limitation: 11,399,104 — 9,917,779 9,511,671 Federal research and development investment tax credits: 2029 299,881 — — — 2030 89,879 — — — 2031 223,759 — — — 2032 186,031 — — — 2033 105,216 — — — 2034 212,609 — 361,430 — 2035 488,555 — 488,555 — 2036 359,594 — 359,594 — 2037 253,885 — 253,885 — 2038 186,015 — 186,015 — 2039 465,535 — 411,540 — 2040 101,562 — 142,367 — 2041 359,115 — — — 3,331,636 — 2,203,386 — December 31, 2021 December 31, 2020 Federal Provincial Italy Federal Provincial $ $ $ $ $ Tax losses carried forward: 2032 628,948 — — — — 2033 2,047,643 1,490,639 — — — 2034 589,007 589,007 — — — 2035 703,664 416,827 — — — 2036 3,579,827 3,440,527 — — — 2037 1,577,876 1,568,739 — — — 2038 5,716,536 5,650,620 — 3,715,297 — 2039 4,163,315 4,079,919 — 4,163,315 1,108,382 2040 2,710,255 2,659,255 — — — Indefinite — — 815,620 — — 21,717,071 19,895,533 815,620 7,878,612 1,108,382 31. Income taxes (continued) December 31, 2021 December 31, 2020 Federal Provincial Federal Provincial $ $ $ $ Other deductible temporary differences, Without time limitation: Financing costs 1,100,504 1,100,504 1,538,633 1,538,633 Intangible assets 3,712,181 3,431,133 3,908,608 3,599,602 Capital losses 464,768 464,768 — — 5,277,453 4,996,405 5,447,241 5,138,235 Deferred tax assets and investment tax credits have not been recognized in respect to these items because it is uncertain that future taxable profit will be available against which the Company can utilise the benefits therefrom. The generation of future taxable profit depends on the successful commercialisation of the Company’s products and technologies. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2021 | |
Segment information | |
Segment information | 32. Segment information The Company operates in one segment, based on financial information that is available and evaluated by the Company’s Board of Directors. The Company’s head office is located in Montreal, Quebec. The operations of the Company are located in three geographic areas: Canada, Italy and India. The following is a summary of the Company’s total revenues by geography: 2021 2020 $ $ Canada 7,395,312 5,828,186 United States 7,535,411 1,463,510 Europe 2,576,884 265,711 Mexico 786,154 174,818 Asia 420,268 — Israel 491 4,007 Saudi Arabia 7,019,954 9,523,353 China 134,664 296,031 South America 1,475,607 181,184 India 3,723,605 — Africa — 38,229 31,068,350 17,775,029 Revenue by product line and revenues recognized by revenue recognition method are presented in note 6. 32. Segment information (continued) The following is a summary of selected asset categories by geographic market, at December 31: 2021 2020 $ $ $ $ $ Canada Italy India Total Total Property and equipment 3,685,974 — 26,963 3,712,937 2,529,570 Right-of-use assets 5,765,993 — — 5,765,993 3,701,000 Intangible assets 2,774,198 — — 2,774,198 905,614 Goodwill 2,660,607 — — 2,660,607 — In 2020, the asset categories above were all located in Canada. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 33. Subsequent event On February 11, 2022, the Company announced that it has received acceptance from the TSX of its notice of intention for a Normal Course Issuer Bid, enabling it to acquire for cancellation up to 7,500,000 common shares from February 15, 2022 to February 14, 2023. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Business combinations | (a) Business combinations Business combinations are accounted for using the acquisition method. Goodwill is measured as the excess of the fair value of the consideration transferred over the net recognized amount of the identifiable assets acquired and liabilities assumed, all measured at the acquisition date. The consideration transferred is measured as the net of the fair values of assets transferred, liabilities assumed, and equity instruments issued by the Company at the acquisition date, including any asset or liability resulting from a contingent consideration arrangement, in exchange of the acquiree. The obligation to pay the contingent consideration is classified as a liability, and measured as a financial instrument or as a provision. Changes in fair values that qualify as a measurement period adjustments of preliminary purchase price allocations are adjusted in the current period and such changes are applied on a retroactive basis. Acquisition costs that the Company incurs in connection with a business combination are recognized in profit or loss as incurred, except for costs associated with the issuance of debt or equity securities. |
Revenue recognition | (b) Revenue recognition Revenue from contracts is recognized for each performance obligation either over a period of time or at a point in time, depending on which method reflects the transfer of control of the goods and services underlying the particular performance obligation. i) Long-term contracts Long-term contracts involve made-to-order customized equipment and machines and are generally priced on a fixed fee basis. Under these contracts, the equipment or machines are made to a customer’s specifications and if a contract is terminated by the customer, the Company is entitled to the greater of the amounts invoiced at the termination date and the reimbursement of the costs incurred to date of termination, including a reasonable margin. Agreements that contain multiple deliverables require the Company to determine whether they contain separately identifiable performance obligations and to allocate the consideration received to each performance obligation. Revenue relating to long-term contracts is recognized over time based on the measure of progress determined by the Company’s efforts or inputs towards satisfying the performance obligation relative to the total expected inputs. The degree of completion is assessed based on the proportion of total costs and/or hours incurred to date, compared to total costs and/or hours anticipated to provide the service under the entire contract, excluding the effects of inputs that do not depict performance, e.g. uninstalled materials. For long-term contracts with uninstalled materials, the Company adjusts the transaction price and recognizes revenue on uninstalled materials to the extent of those costs incurred, i.e. at a zero percent profit margin, when certain conditions are met. Estimates are required to determine anticipated costs and/or hours on long-term contracts. A provision is made for the entire amount of expected loss, if any, in the period in which they are first determinable. 3. Significant accounting policies (continued) (b) Revenue recognition (continued) i) Long-term contracts (continued) Contract modifications are changes in scope and/or price that are approved by the parties to the contract. Approval may be written, oral or implied by customary business practices, and are legally enforceable. The Company accounts for modifications as a separate contract if the modifications add distinct goods or services that are priced commensurate with stand-alone selling prices or if the remaining goods or services are distinct from those already transferred, otherwise modifications are accounted for as part of the original contract. Costs and profits in excess of billings on uncompleted contracts and trade receivables are both rights to consideration in exchange for goods or services that the Company has transferred to a customer, however the classification depends on whether such right is only conditional on the passage of time (trade receivables) or if it is also conditional on something else (costs and profits in excess of billings on uncompleted contracts), such as the satisfaction of further performance obligations under the contract. Billings in excess of costs and profits on uncompleted contracts is the cumulative amount received and contractually receivable by the Company that exceeds the right to consideration resulting from the Company’s performance under a given contract. The costs to obtain long-term contracts such as sale commissions are recognized as Contract assets and recognized as selling expenses over time based on degree of completion of the related contract. ii) Sales of goods Revenue related to sales of goods, which may include powders and spare parts are measured based on the consideration specified in contracts with customers. The Company recognizes revenue at a point in time when it transfers control of the goods to the buyer. This is generally at the time the customer obtains legal title to the product and when it is physically transferred to the custody transfer point agreed with the customer. iii) Sale of intellectual property Sale of intellectual property is recognized at the date the recipient obtains control of the asset. Variable consideration related to the sale of intellectual property is recognized to the extent that it is highly probable that a reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved. |
Foreign currency translation | (c) Foreign currency translation i) Foreign currency transactions Revenue and expense transactions in foreign currencies are translated into Canadian dollars using the average exchange rates prevailing at the time of the transaction. Foreign currency balances are translated into Canadian dollars at year end exchange rates for monetary items and at historical rates for non-monetary items. Translation gains or losses are included in the determination of net earnings. ii) Foreign operations The assets and liabilities of foreign operations are translated into Canadian dollars using exchange rates prevailing at the end of the reporting period. Revenue and expense items are translated at the average exchange rates for the period. Exchange differences arising from the translation process of foreign operations are recognized as foreign currency translation adjustments in other comprehensive income and accumulated in equity. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash and cash equivalents are financial instruments readily convertible to a known amount of cash and not subject to a significant risk of changes in value. Cash equivalents include instruments with a maturity of three months or less from the date of acquisition and instruments with an original term longer than three months if there is no significant penalty for withdrawal within a three-month period from the date of acquisition. |
Inventory | (e) Inventory Inventory is composed of spare parts for resale. Inventory is valued at the lower of cost and net realizable value. The cost of inventory is based on the first-in, first-out principle and comprises all costs of purchases. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and selling costs. |
Deferred income taxes | (f) Deferred income taxes i) Current tax Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the date of the statements of financial position. ii) Deferred tax Deferred tax is provided using the liability method, providing for temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The temporary difference is not provided for if it arises from the initial recognition of goodwill or the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the financial position reporting date and whose implementation is expected over the period in which the deferred tax is realized or recovered. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be used. Deferred tax assets and liabilities are presented as non-current. Assets and liabilities are offset where the entity has a legally enforceable right to offset current tax assets and liabilities or deferred tax assets and liabilities, and the respective assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity or different taxable entities which intend to settle the liabilities and assets on a net basis. |
Earnings (loss) per share | (g) Earnings (loss) per share The Company presents basic earnings (loss) per share data for its common shares. Basic loss per share is computed by dividing net earnings (loss) by the weighted average number of common shares outstanding during the year. Diluted loss per share is computed similarly to basic earnings per share, except that the weighted average number of shares outstanding is increased to include shares from the assumed exercise of stock options and share purchase warrants, if dilutive. The number of additional shares is calculated by assuming that outstanding share options and warrants were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the year. Potential shares from all outstanding stock options and share purchase warrants are excluded from the calculation of diluted loss per share as their inclusion is considered anti-dilutive in years when a loss is incurred. |
Property and equipment | 3. Significant accounting policies (continued) (h) Property and equipment Property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses if applicable. Cost includes expenditures that are directly attributable to the acquisition of the asset and bringing the asset into operation. Borrowing costs capitalized to asset under development represents the interest expense calculated under the effective interest method and does not include any fair value adjustments of investments designated at fair value through profit and loss. Government assistance and investment tax credits related to the purchase or development of property and equipment are recorded in reduction of the cost. When major parts of an item of property and equipment have different useful lives, they are accounted for separately. Property and equipment are depreciated from the acquisition date over their respective useful life. Depreciation of an asset under construction begins when it is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by the Company. Depreciation is calculated using the following methods and rates: Computer equipment Straight line over 3 years Machinery and equipment Straight line over 10 years Automobiles Straight line over 7 years Leasehold improvements Lesser of the lease term or the useful life ( 20 years ) Impairment – non-financial assets The carrying amounts of the Company’s non-financial assets are assessed at each reporting date to determine whether there is an indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Impairment losses recognized in prior periods are assessed at each reporting date as to whether there are any indications that the previously recognized losses may no longer exist or may be decreased. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted prospectively if appropriate . |
Leases | (i) Leases Under IFRS 16, at inception, the Company assesses whether a contract is, or contains, a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration . The Company recognizes a right-of-use asset and a lease liability at the commencement date of the lease, i.e. the date the underlying asset is available for use. Right-of-use assets Right-of-use assets are measured at cost, less any accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. Cost of right-of-use assets is comprised of: - the initial measurement amount of the lease liabilities recognized. - any lease payments made at or before the commencement date, less any lease incentives received; and 3. Significant accounting policies (continued) (i) Leases (continued) Right-of-use assets (continued) - any initial direct costs incurred; and - an estimate of costs to dismantle and remove the underlying asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease contract. Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset based on periods detailed above. The depreciation starts at the commencement date of the lease. Right-of-use assets are assessed for impairment whenever there is an indication that the right-of-use assets may be impaired. Lease liabilities Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date over the lease term. The present value of the lease payments is determined using the lessee’s incremental borrowing rate at the commencement date if the interest rate implicit in the lease is not readily determinable. The incremental borrowing rate is a function of the lessee’s incremental borrowing rate, the nature of the underlying asset, the location of the asset, the length of the lease and the currency of the lease contract. Generally, the Company uses the lessee’s incremental borrowing rate for the present value. At the commencement date, lease payments generally include fixed payments, less any lease incentives receivable, variable lease payments that depend on an index (e.g. based on inflation index) or a specified rate, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising the option to terminate the lease. Lease payments also include amounts expected to be paid under residual value guarantees and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. Variable lease payments that do not depend on an index or a specified rate are not included in the measurement of lease liabilities but instead are recognized as expenses in the period in which the event or condition that triggers the payment occurs. After the commencement date, the carrying amount of lease liabilities is increased to reflect the accretion of interest and reduced to reflect lease payments made. In addition, the carrying amount of lease liabilities is remeasured when there is a change in future lease payments arising from a change in an index or specified rate, if there is a modification to the lease terms and conditions, a change in the estimate of the amount expected to be payable under residual value guarantee, or if the Company changes its assessment of whether it will exercise a termination, extension or purchase option. The remeasurement amount of the lease liabilities is recognized as an adjustment to the right-of-use asset, or in the profit and loss statement when the carrying amount of the right- of-use asset is reduced to zero. Classification and presentation of lease-related expenses Depreciation charge for right-of-use assets, expenses related to variable lease payments not included in the measurement of lease liabilities and loss (gain) related to lease modifications are allocated in the Company’s profit and loss statement based on their function within the Company, while interest expense on lease liabilities is presented within finance costs. 3. Significant accounting policies (continued) (i) Leases (continued) Cash flow classification Lease payments related to the principal portion of the lease liabilities are classified as cash flows from financing activities while lease payments related to the interest portion of the lease liabilities are classified as interest paid within cash flows from financing activities. Lease incentives received are classified as cash flows from investing activities. Variable lease payments not included in the measurement of lease liabilities are classified as cash flows from operating activities. |
Government assistance and investment tax credits | (j) Government assistance and investment tax credits Investment tax credits are comprised of scientific research and experimental development tax credits. Government assistance and investment tax credits are recognized when there is reasonable assurance of their recovery and recorded as a reduction of the related expense or cost of the asset acquired, as applicable. Investment tax credits are subject to the customary approvals by the pertinent tax authorities. Adjustments required, if any, are reflected in the year when such assessments are received. |
Intangible assets and Goodwill | (k) Intangible assets and Goodwill Intangible assets acquired separately are measured at cost on initial recognition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. Identifiable intangible assets acquired in a business combination are recognized separately from goodwill if they meet the definition of an intangible asset and if their fair value can be measured reliably. The cost of these intangible assets equals their acquisition-date fair value. Subsequent to initial recognition, identifiable intangible assets acquired in a business combination are recorded at cost less accumulated amortization and impairment losses, if they are amortizable, otherwise only at cost net of accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful life of the asset and assessed for impairment whenever there is an indication of impairment. Amortization expense on the intangible assets with finite lives is recognized in the statements of comprehensive loss. Research costs are charged to comprehensive loss in the year they are incurred, net of related investment tax credits. Development costs are charged to comprehensive loss in the year they are incurred net of related investment tax credit s unless they meet specific criteria related to technical, market and financial feasibility in order to be recognized as intangible assets which include: - the technical feasibility of completing the intangible asset so that it will be available for use or sale; - the Company has the intention to complete and the ability to use or sell the asset; - the asset will generate future economic benefits; - the Company has the resources to complete the asset; and - ability to measure reliably the expenditure during development. Costs to establish patents for internally developed technology are considered development costs and are charged to comprehensive loss in the year they are incurred unless they meet specific criteria related to technical, market and financial feasibility. Patent costs include legal and other advisor fees to obtain patents, and patent application fees. 3 Significant accounting policies (continued) (k) Intangible assets and Goodwill (continued) Amortization of the development costs is calculated on a straight-line basis over the remaining useful life of the related patent and begins when development is complete. During the period of development, the asset is tested annually for impairment. Residual values and useful lives are reviewed at each reporting date. Amortization is calculated on a straight-line basis: Useful life Production backlog 30 months Patents and development costs 1 to 21 years Goodwill represents the future economic benefits arising from a business combination that are not individually identified and separately recognized. Goodwill is carried at cost less accumulated impairment losses. Goodwill is not amortized, but is tested for impairment annually or if there is an indication of impairment. Impairment losses recognized for goodwill cannot be reversed. Impairment testing of goodwill, other intangible assets, property and equipment and right-of-use assets For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of a related business combination and represents the lowest level within the Company at which management monitors goodwill. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purposes of testing non-financial assets for impairment, management has identified one CGU. An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its recoverable amount. Impairment losses are recognized in the statement of comprehensive loss. Impairment losses recognized in respect of the CGU are allocated first to reduce the carrying amount of goodwill allocated to the units, and then to reduce the carrying amounts on a pro-rata basis of the other assets in the unit. |
Employee benefits | (l) Employee benefits Share-based payments The Company applies a fair value-based method of accounting to all share-based payments. Employee and director stock options are measured at their fair value of each tranche on the grant date and recognized in its respective vesting period. Non-employee stock options are measured when the services are rendered by the consultant at the fair value of the services received, if the fair value can be measured reliably. In the case the fair value of the services cannot be measured reliably, the services are measured indirectly using the fair value of the equity instruments granted. If there are unidentifiable services, then they are measured at grant date. The cost of stock options is presented as share-based payment expense. On the exercise of stock options, share capital is credited for the consideration received and for the fair value amounts previously credited to contributed surplus. The Company uses the Black-Scholes option-pricing model to estimate the fair value of share-based payments. 3. Significant accounting policies (continued) (l) Employee benefits (continued) Deferred profit-sharing plan The Company established a yearly Deferred Profit-Sharing Plan (“DPSP”) for all eligible employees who have materially and significantly contributed to the prosperity and profits of the Company. The significance of any contribution of any employee to the prosperity and profits of the Company for purposes of eligibility in the DPSP is determined by the Board of Directors of the Company upon such relevant information as the Board, in its sole discretion, may find relevant. All related persons to the Company are excluded from participating in the DPSP. For all eligible employees, the Company is required to contribute to the DPSP out of the profits of the Company. The amount of the Company’s contribution will be such amount which, in the opinion of its Board of Directors, is warranted by the profits and overall financial position of the Company. During the year, the Company contributed $ Nil to the DPSP ($ Nil in 2020). Obligations for contributions to the DPSP are recognized as an employee benefit expense in the statement of comprehensive loss in the periods during which services are rendered by employees. Short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under the short-term incentive plan if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (m) Equity Instruments |
Issuance of equity instruments | Issuance of equity instruments Incremental costs directly attributable to the issue of equity-classified shares are recognized as a deduction from the common shares and warrants, net of any tax effects. |
Extinguishing financial liabilities with equity instruments | Extinguishing financial liabilities with equity instruments When equity instruments issued to a creditor to extinguish all or part of a financial liability are recognized initially, the Company measures them at the fair value of the equity instruments issued, unless that fair value cannot be reliably measured. If the fair value of the equity instruments issued cannot be reliably measured, then the equity instruments shall be measured to reflect the fair value of the financial liability extinguished. |
Financial Instruments | (n) Financial Instruments Financial assets are classified at amortized cost, fair value through profit or loss (“FVTPL”) or fair value through other comprehensive income (“FVOCI”) based on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of these assets. Assessment and decision on the business model approach used is an accounting judgment. 3. Significant accounting policies (continued) (n) Financial Instruments (continued) A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solel y payments of principal and interest on the principal amount outstanding. The Company includes in this category cash and cash equivalents, trade accounts receivable, other receivables, royalties receivable and deposits. A financial asset is measured at fair value through profit or loss (“FVTPL”) if: (a) Its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on the principal amount outstanding; or (b) It is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell; or (c) At initial recognition, it is irrevocably designated as measured at FVTPL when doing so eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases. The Company includes in this category strategic investments in equity instruments. Changes in fair value of financial liabilities attributable to changes in the entity’s own credit risk are to be presented in other comprehensive income unless they affect amounts recorded in income. All financial liabilities, other than those measured at fair value through profit or loss, are included in the financial liabilitie s measured at amortized cost. The Company includes in this category accounts payable and accrued liabilities, term loans, and convertible debentures. The balance due on business combination is measured at FVTPL. Recognition : The Company recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions of the instrument. Purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation o r convention in the market place (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to purchase or sell the asset. Initial measurement Financial assets and liabilities (other than financial assets at FVTPL) are measured initially at their fair value plus any directly attributable incremental costs of acquisition or issue. Financial assets and financial liabilities at FVTPL are recorded in the statement of financial position at fair value. All transaction costs for such instruments are recognized directly in profit or loss. Subsequent measurement Financial assets (other than financial assets at FVTPL) are measured at amortized cost using the effective interest method less any allowance for impairment. Gains and losses are recognized in profit or loss when the debt instruments are derecognized or impaired, as well as through the amortization process. 3. Significant accounting policies (continued) (n) Financial Instruments (continued) Subsequent measurement (continued) Financial liabilities are measured at amortized cost using the effective interest method except for derivatives and financial liabilities designated at FVTPL. Gains and losses are recognized in profit or loss when the liabilities are derecognized, as well as through the amortization process. Fair value measurement principles Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where financial assets and financial liabilities measured at fair value though profit or loss have a quoted price in an active market at the reporting date, the fair value is based on this price. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from a stock exchange and those prices represent actual and regularly occurring market transactions on an arm’s length basis. Securities traded on stock exchanges are stated at market price based on the closing price on the relevant valuation day. Derecognition A financial asset is derecognized where the rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset. The Company derecognizes a financial liability when the obligation under the liability is discharged, cancelled or expired. Offsetting of financial instruments Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Impairment of financial instruments The Company applies the “expected credit loss” (“ECL”) model to financial assets measured at amortized cost. The Company’s financial assets subject to this impairment model are cash and cash equivalents, trade and other receivables,royalties receivable and deposits. The trade accounts receivable have no financing component and have maturities of less than 12 months at amortized cost and, as such, the Company applies the simplified approach for expected credit losses (ECLs) to all its trade accounts receivable. Therefore, the Company recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company’s approach to ECLs reflects a probability-weighted outcome, the time value of money and reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. The Company uses the provision matrix as a practical expedient to measure ECLs on trade receivables, based on days past due for groupings of receivables with similar loss patterns. The provision matrix is based on historical observed loss rates over the expected life of the receivables and is adjusted for forward-looking estimates. Impairment losses are recognized in profit or loss and reflected in an allowance account presented in reduction of receivables. 3. Significant accounting policies (continued) (n) Financial Instruments (continued) Write- off The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. Compound Financial Instruments Compound financial instruments issued by the Company comprise convertible debentures that can be converted into common shares at the option of the holder, and the number of shares to be issued does not vary with changes in their fair value. The component parts of the compound instrument issued by the Company are initially classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. The conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company’s own equity instruments is an equity instrument. At the date the convertible debentures are issued, the liability component is initially recognized at the fair value of similar debt instruments which do not have an equity conversion option. The initial amount of the liability component is determined by discounting the face value of the convertible debentures using a rate of interest prevailing for similar non-convertible instruments at the date of issue for instruments of similar terms and risks. The conversion option classified as the equity component is determined by deducting the amount of the liability component from the gross proceeds. The equity component is recognized net of income tax effects within the other equity account. Subsequently, the liability component is accounted for at amortized cost and is accreted using the effective interest method, up to the face value of the convertible debentures during the period they are outstanding. Interest expense on the convertible debentures is composed of the interest calculated on the face value of the convertible debentures and a non-cash notional interest representing the accretion of the carrying value of the convertible debentures. The equity component is not remeasured. The conversion option classified as equity remains in the other equity account until the conversion option is exercised, in which case, the balance recognized in other equity is transferred to share capital. When the conversion option remains unexercised at the maturity date of the convertible debentures, the balance recognized in other equity will be transferred to contributed surplus. No gain or loss is recognized in the consolidated income statement upon conversion or expiration of the conversion option. Transaction costs related to the issuance of convertible debentures are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in other equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the term of the convertible debentures using the effective interest method. Effective Interest Method The effective interest method is a method of calculating the amortized cost of a financial asset/financial liability and of allocating interest income/expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts/payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the ex pected life of the financial instrument, or (when appropriate) a shorter period, to the net carrying amount on initial recognition. 3. Significant accounting policies (continued) (o) Future Changes and Amendments to Accounting Standards and Interpretations i) IAS 1 Presentation of Financial Statements - Accounting Policies In 2021, the IASB amended IAS 1, Presentation of Financial Statements , to require entities to disclose their material accounting policy information rather than their significant accounting policies. Additional amendments to IAS 1 are made to explain how an entity can identify a material accounting policy. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. ii) IAS 1 Presentation of Financial Statements - Classification of Liabilities The IASB released Classification of Liabilities as Current or Non-current (Amendments to IAS 1) , which clarifies the guidance in IAS 1 Presentation of Financial Statements on whether a liability should be classified as either current or non-current relating to the right to defer settlement of the liability for at least twelve months after the reporting date. The amendment is effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. iii) IAS 12 Income Taxes The IASB released Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12) . The amendment relates to the recognition of deferred tax when an entity accounts for transactions, such as leases or decommissioning obligations, by recognizing both an asset and a liability. The objective of this amendment is to narrow the initial recognition exemption in paragraphs 15 and 24 of IAS 12, so that it would not apply to transactions that give rise to both taxable and deductible temporary differences, to the extent the amounts recognized for the temporary differences are the same. The amendment is effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. iv) IAS 37 Provisions, Contingent Liabilities and Contingent Assets The IASB released Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37). The amendments specify which costs an entity includes in determining the cost of fulfilling a contract for the purpose of assessing whether the contract is onerous. Costs to be included comprise the costs that relate directly to the contract, which include both incremental costs of fulfilling the contract and an allocation of other costs that relate directly to fulfilling the contract. The amendment is effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted. The Company is currently assessing the impact of these future changes and amendments on its consolidated financial statements. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting policies | |
Schedule of estimated useful lives of property and equipment | Computer equipment Straight line over 3 years Machinery and equipment Straight line over 10 years Automobiles Straight line over 7 years Leasehold improvements Lesser of the lease term or the useful life ( 20 years ) |
Schedule of estimated useful lives of intangible assets | Useful life Production backlog 30 months Patents and development costs 1 to 21 years |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | |
Schedule of final allocation of the purchase price | December 31, 2021 Final $ Total consideration Consideration paid at closing 1 Contingent consideration 3,841,999 Consideration paid at closing and continent consideration 3,842,000 Settlement of pre-existing loan receivable from Pyro Green-Gas 1,744,400 5,586,400 Net assets acquired Current assets 1 5,186,086 ROU asset 477,608 Property and equipment 42,552 Intangible assets and Goodwill 2 4,780,607 Deferred income tax asset 79,360 Current liabilities (4,507,907) Non-current liabilities (471,906) 5,586,400 1 Includes $807,946 of cash and trade receivables with a net fair value of $3.3 million, including an allowance for doubtful accounts of $0.5 million. 2 The goodwill of $2.7 million recorded on the transaction is mainly attributable to the expected growth in biogas upgrading market and the expertise of the workforce, and it is not expected to be deductible for tax purposes . |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenues. | |
Schedule of the Company???s revenues by revenue recognition method | The company’s revenues are generated primarily from the following: 2021 2020 $ $ Revenue from contracts with customers by product line: PUREVAP™ 6,138,111 4,163,059 DROSRITE™ 7,940,771 9,976,696 Development and support related to systems supplied to the U.S. Navy 7,522,809 1,425,883 Torch related sales 2,084,511 1,452,455 Biogas upgrading and pollution controls 6,800,090 — Other sales and services 582,058 756,936 31,068,350 17,775,029 2021 2020 $ $ Revenue from contracts with customers: Sales of goods under long-term contracts recognized over time 25,918,594 12,432,666 Sales of goods at a point of time 1,533,910 1,730,273 Other revenue: Sale of intellectual properties (i) 3,615,846 3,612,090 31,068,350 17,775,029 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | 2021 2020 $ $ Cash 3,568,561 10,104,899 Guaranteed investment certificates 8,633,952 8,000,000 Cash and cash equivalents 12,202,513 18,104,899 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts receivable | |
Schedule of accounts receivables | December 31, December 31, 2021 2020 $ $ 1 – 30 days 2,260,428 309,362 31 – 60 days 44,838 226,713 61 – 90 days 6,855,822 253,141 Greater than 90 days 7,357,825 218,008 Total trade accounts receivable 16,518,913 1,007,224 Unbilled trade receivables — 1,132,911 Other receivables 1 270,536 931,041 Sales tax receivable 850,167 258,477 17,639,616 3,329,653 |
Strategic investments (Tables)
Strategic investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Strategic investments. | |
Schedule of components and changes in strategic investments | December 31, December 31, 2021 2020 $ $ Beauce Gold Fields (“BGF”) shares – level 1 123,095 123,095 HPQ Silicon Resources Inc. (“HPQ”) shares - level 1 12,306,196 16,489,220 HPQ warrants – level 3 2,472,368 23,379,435 14,901,659 39,991,750 The change in the strategic investments is summarized as follows: (“BGF”) shares – level 1 (“HPQ”) shares - level 1 HPQ warrants – level 3 Quantity $ Quantity $ Quantity $ Balance, December 31, 2019 1,025,794 133,354 18,450,000 1,476,000 17,750,000 — Additions — — 7,887,000 3,395,742 5,200,000 560,000 Received in lieu of payment of services rendered — — 4,394,600 395,514 4,394,600 — Exercised — — 1,500,000 540,000 (1,500,000) (337,500) Disposed — — (17,241,400) (10,798,056) — — Change in the fair value — (10,259) — 21,480,020 — 23,156,935 Balance, December 31, 2020 1,025,794 123,095 14,990,200 16,489,220 25,844,600 23,379,435 Additions — — 8,268,000 8,070,109 — — Exercised — — 16,250,000 11,700,000 (16,250,000) (9,181,250) Disposed — — (12,755,600) (14,252,732) — — Change in the fair value — — — (9,700,401) — (11,725,817) Balance, December 31, 2021 1,025,794 123,095 26,752,600 12,306,196 9,594,600 2,472,368 |
Schedule of activity of HPQ warrants | Number of Number of warrants warrants Exercise Expiry date Dec. 31, 2020 Additions Exercised Dec. 31, 2021 price ($) August 21, 2021 16,250,000 — (16,250,000) — 0.16 April 29, 2023 1,200,000 — — 1,200,000 0.10 June 2, 2023 4,394,600 — — 4,394,600 0.10 September 3, 2023 4,000,000 — — 4,000,000 0.61 25,844,600 — (16,250,000) 9,594,600 |
Schedule of assumptions used in measuring HPQ warrants using the Black-Scholes option pricing model | Number of warrants 1,200,000 4,394,600 4,000,000 Date of issuance April 29, 2020 June 2, 2020 Sept. 3, 2020 Exercise price ($) 0.10 0.10 0.61 Assumptions under the Back Sholes model: Fair value of the shares ($) 0.04 1.05 1.05 Risk free interest rate (%) 0.30 0.20 0.20 Expected volatility (%) 97.45 114.80 112.52 Expected dividend yield Contractual remaining life (number of months) 36 29 32 2021 2020 Number of warrants 1,200,000 4,394,600 4,000,000 1,200,000 4,394,600 4,000,000 Date of issuance April 29, 2020 June 2, 2020 Sept. 3, 2020 April 29, 2020 June 2, 2020 Sept. 3, 2020 Exercise price ($) 0.10 0.10 0.61 0.10 0.10 0.61 Assumptions under the Back Sholes model: Fair value of the shares ($) 0.46 0.46 0.46 1.05 1.05 1.05 Risk free interest rate (%) 1.22 1.22 1.22 0.2 0.2 0.2 Expected volatility (%) 89.88 94.01 110.47 115.3 114.8 112.52 Expected dividend yield Contractual remaining life (in months) 19 20 23 28 29 32 |
Royalties receivable (Tables)
Royalties receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Royalties receivable | |
Schedule of royalties receivable | December 31 December 31 2021 2020 $ $ Opening balance 1,060,000 — Accretion interest 132,809 — Royalties recognized during the year 450,000 1,600,000 Discounting (134,155) (390,000) Amounts received during the year (250,000) (150,000) Balance at end of the year 1,258,654 1,060,000 Current portion 311,111 — Non-current portion 947,543 1,060,000 1,258,654 1,060,000 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits | |
Schedule of components of deposits | December 31 December 31 2021 2020 $ $ Current portion: Suppliers 1,236,211 1,421,246 Security deposit on leased premises 92,241 — Total current 1,328,452 1,421,246 Non-current portion: Suppliers 1,952 1,099 Security deposit on leased premises 246,804 300,242 Total non-current 248,756 301,341 Total Deposits 1,577,208 1,722,587 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and equipment. | |
Schedule of components of property and equipment | Machinery Equipment Computer and Leasehold under equipment equipment Automobiles improvements construction Total $ $ $ $ $ $ Cost Balance at December 31, 2019 521,988 1,621,899 21,912 165,006 1,671,962 4,002,767 Additions 27,671 — 306,164 15,895 268,272 618,002 Impairment — — (21,912) — — (21,912) Balance at December 31, 2020 549,659 1,621,899 306,164 180,901 1,940,234 4,598,857 Acquired through business combination 13,585 28,967 — — — 42,552 Additions 245,984 384,092 30,495 752,204 84,143 1,496,918 Balance at December 31, 2021 809,228 2,034,958 336,659 933,105 2,024,377 6,138,327 Accumulated depreciation Balance at December 31, 2019 491,906 1,421,613 18,782 92,985 — 2,025,286 Depreciation 17,206 20,029 22,083 3,800 — 63,118 Impairment — — (19,117) — — (19,117) Balance at December 31, 2020 509,112 1,441,642 21,748 96,785 — 2,069,287 Depreciation 88,410 182,739 59,959 24,995 — 356,103 Balance at December 31, 2021 597,522 1,624,381 81,707 121,780 — 2,425,390 Carrying amounts Balance at December 31, 2020 40,547 180,257 284,416 84,116 1,940,234 2,529,570 Balance at December 31, 2021 211,706 410,577 254,952 811,325 2,024,377 3,712,937 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of components and movements in right of use assets | Land and Computer building equipment Total $ $ $ Balance at January 1, 2020 3,724,696 18,073 3,742,769 Remeasurement of lease liabilities 366,566 — 366,566 Depreciation (402,947) (5,388) (408,335) Balance at December 31, 2020 3,688,315 12,685 3,701,000 Addition - business combination 477,608 — 477,608 Addition 2,157,796 — 2,157,796 Depreciation (566,182) (4,228) (570,411) Balance at December 31, 2021 5,757,537 8,457 5,765,993 |
Schedule of movements in lease liabilities | $ Balance at January 1, 2020 3,985,026 Remeasurement 366,566 Payments (1,363,050) Balance at December 31, 2020 2,988,542 Addition - business acquisition 477,608 Additions - other 2,120,893 Payments (263,078) Balance at December 31, 2021 5,323,965 Current portion 2,934,236 Non-current portion 2,389,729 5,323,965 |
Schedule of amount recognized in the statement of comprehensive loss | 2021 2020 $ $ Depreciation of right-of-use assets 570,411 408,335 Interest on lease liabilities 307,691 211,666 Expense related to lease payments not included in the measurement of lease liabilities 178,707 118,476 |
Schedule of maturity analysis ??? contractual undiscounted cash flows of lease liabilities | $ 2022 3,220,750 2023 353,380 2024 357,113 2025 332,296 2026 229,332 Thereafter 2,121,321 6,614,192 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets. | |
Schedule of components and movements in intangible assets | Production Development backlog Patents costs Total $ $ $ $ Cost Balance at December 31, 2019 — 572,486 244,871 817,357 Additions — 305,420 — 305,420 Write-off — (109,514) — (109,514) Balance at December 31, 2020 — 768,392 244,871 1,013,263 Acquired through business combination 2,120,000 — — 2,120,000 Additions — 214,497 — 214,497 Write-off — (85,544) — (85,544) Balance at December 31, 2021 2,120,000 897,345 244,871 3,262,216 Accumulated amortization Balance at December 31, 2019 — 47,443 33,016 80,459 Amortization — 10,682 16,508 27,190 Balance at December 31, 2020 — 58,125 49,524 107,649 Amortization 353,333 10,528 16,508 380,369 Balance at December 31, 2021 353,333 68,653 66,032 488,018 Carrying amounts Balance at December 31, 2020 — 710,267 195,347 905,614 Balance at December 31, 2021 1,766,667 828,692 178,839 2,774,198 |
Term loans (Tables)
Term loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Term loans | |
Schedule of components and movements of term loans | Canada 2019 SR&ED 2018 SR&ED Other Term Other Term Emergency Business Other Term Tax Credit Tax Credit EDC Loan¹ Loans² Loans³ Account Loan 4 Loans 5 loan 6 loan 7 Total $ $ $ $ $ $ $ $ Balance, December 31, 2019 — — — — 110,933 185,331 199,736 496,000 Addition 157,058 38,861 — — — — — 195,919 Financing costs (83,119) — — — — — — (83,119) Accretion 1,861 — — — 4,267 40,902 14,264 61,294 Payments — (1,954) — — (115,200) (226,233) (214,000) (557,387) Balance, December 31, 2020 75,800 36,907 — — — — — 112,707 Assumed through business combination — 36,520 50,000 — — — 86,520 Accretion 12,185 — — — — — 12,185 Payments — (12,207) (8,300) — — — — (20,507) Balance, December 31, 2021 87,985 24,700 28,220 50,000 — — — 190,905 Less current portion — (13,084) (19,920) (50,000) — — — (83,004) Balance, December 31, 2021 87,985 11,616 8,300 — — — — 107,901 1 maturing in 2027, non-interest bearing, payable in equal instalments from July 2023 to June 2027 ² maturing October 23, 2023 bearing interest at a rate of 6.95% per annum, payable in monthly instalments of $1,200 secured by automobile (carrying amount of $23,749 as at December 31, 2021) 3 maturing in May 2023, payable in monthly instalments of $1,660 , bearing interest at 7.45% 4 loan bearing no interest and no minimum repayment, if repaid by December 2023 5 bore interest at 8% per annum, repaid July 2020. 6 bore interest at 16.68% , repaid July 2020. 7 bore interest at 16.68% , repaid May 2020. |
Convertible debentures (Tables)
Convertible debentures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Convertible debentures | |
Schedule of components and movements in convertible debentures | 2020 Convertible 2018 Convertible loan debentures Total $ Balance at December 31, 2019 — 2,898,358 2,898,358 Liability component at issuance 804,578 — 804,578 Effective interest accretion 22,982 155,642 178,624 827,560 3,054,000 3,881,560 Repayment of debentures including accommodation fees, in cash — (358,500) (358,500) Conversion into common shares (827,560) (2,695,500) (3,523,060) Balance at December 31, 2020 — — — Balance at December 31, 2021 — — — |
Schedule of recording of 2020 Convertible loan at issuance date | $ Liability component 804,578 Conversion option recognized in equity, net of transaction cost of $47,338 98,422 Net proceeds 903,000 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders' equity | |
Schedule of activity in stock options | Weighted Number of average options exercise price $ Balance – December 31, 2019 8,438,000 0.37 Granted 2,810,000 4.23 Exercised (1) (2,118,000) 0.36 Forfeited (90,000) 1.02 Balance, December 31, 2020 9,040,000 1.57 Granted 2,970,000 4.55 Exercised (1) (3,482,000) 0.32 Forfeited (125,000) 4.41 Balance, December 31, 2021 8,403,000 3.10 |
Schedule of assumptions used in measurement of fair value of stock options based on the Black-Scholes option pricing model | The weighted average fair value of stock options granted for the year ended December 31, 2021 was $2.99 ( $2.88 in 2020) per option. The weighted average fair value of each option granted was estimated at the grant date for purposes of determining share-based payment expense using the Black-Scholes option pricing model based on the following weighted-average assumptions: Years ended December 31, 2021 2020 Number of options granted 2,970,000 2,810,000 Exercise price ($) 4.55 4.23 Fair value of each option under the Black Scholes pricing model ($) 2.99 2.88 Assumptions under the Black Scholes model: Fair value of the market share ($) 4.52 4.23 Risk free interest rate (%) 1.11 0.38 Expected volatility (%) 83.00 88.49 Expected dividend yield — — Expected life (number of months) 60 60 Forfeiture rate (%) — — |
Schedule of outstanding options, as issued under the stock option plan to directors, officers, employees and consultants for the purchases of one common share per option | Number of Number of Number of stock stock stock Exercise options options options price Dec 31, 2020 Granted Exercised Forfeitures Dec 31, 2021 vested (1) per option Expiry date $ September 25, 2016 3,000,000 (3,000,000) — 0.18 Sept 25, 2021 November 3, 2017 2,420,000 (20,000) 2,400,000 2,400,000 0.58 Nov 3, 2022 May 10, 2018 250,000 (250,000) — 0.52 May 10, 2023 July 3, 2018 300,000 300,000 300,000 0.51 July 3, 2023 October 29, 2018 70,000 (30,000) 40,000 40,000 0.52 Oct 29, 2023 September 29, 2019 200,000 (100,000) 100,000 100,000 0.51 Sept 29, 2024 January 2, 2020 100,000 100,000 100,000 0.45 Jan 2, 2025 July 16, 2020 2,450,000 (82,000) (125,000) 2,243,000 1,343,000 4.41 Jul 16, 2025 October 26, 2020 250,000 250,000 125,000 4.00 Oct 26, 2025 April 6, 2021 — 550,000 550,000 320,000 8.47 Apr 6, 2026 June 1, 2021 — 200,000 200,000 50,000 6.59 June 1, 2026 June 14, 2021 — 100,000 100,000 25,000 6.70 June 14, 2026 October 14, 2021 — 100,000 100,000 10,000 5.04 Oct 14, 2026 December 17, 2021 — 1,920,000 1,920,000 1,920,000 3.13 Dec 17, 2026 December 30, 2021 — 100,000 100,000 100,000 3.61 Dec 30, 2026 9,040,000 2,970,000 (3,482,000) (125,000) 8,403,000 6,833,000 3.10 |
Schedule of activity in warrants and the number of issued and outstanding share purchase warrants | Number of Number of warrants warrants Dec 31, Dec 31, Price per 2020 Issued Exercised Expired 2021 warrant Expiry date $ Issuance of units – September 28, 2018 3,448,276 (3,448,276) — 0.58 Jan 28, 2021 Issuance of units – October 19, 2018 100,000 (100,000) — 0.58 Feb 13, 2021 Issuance of units – May 15, 2019 1,355,500 (1,355,500) — 0.85 May 15, 2021 Issuance of units – May 28, 2019 750,000 (750,000) — 0.85 May 24, 2021 Issuance of units – June 19, 2019 500,000 (500,000) — 0.85 Jun 19, 2021 Issuance of units – October 25, 2019 225,000 (225,000) — 0.75 Oct 25, 2021 Issuance of units – November 10, 2020 1,677,275 (1,672,000) (5,275) — 4.50 Nov 10, 2022 1 Issuance of warrants – November 10, 2020 95,707 (95,707) — 4.50 Nov 10, 2022 1 8,151,758 — (8,146,483) (5,275) — 1.52 ¹ On March 10, 2021, the Company has delivered the Acceleration Notice to accelerate the expiry date of the warrants to April 14, 2021 issued on November 10, 2020 |
Supplemental disclosure of ca_2
Supplemental disclosure of cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental disclosure of cash flow information | |
Summary of supplemental disclosure of cash flow information | 2021 2020 $ $ Accounts receivable (12,372,139) (2,622,018) Costs and profits in excess of billings on uncompleted contracts (3,849,077) (950,653) Inventory (839,352) — Investment tax credits receivable 1,015,862 (562,980) Royalties receivable (65,845) (1,060,000) Deposits 145,379 (1,394,160) Contract assets — (855,592) Prepaid expenses 39,111 (39,042) Accounts payable and accrued liabilities 1,953,208 (148,678) Billings in excess of costs and profits on uncompleted contracts 1,485,969 3,508,315 Income taxes (99,072) — (12,585,956) (4,124,808) |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net finance costs | |
Summary of net finance costs | 2021 2020 $ $ Financial expenses Interest and fees on convertible debentures — 171,042 Interest accretion of convertible debentures — 182,700 Interest on term loans 99,960 20,957 Interest on lease liabilities 307,691 211,666 Interest accretion on promissory notes and on balance due on business combination 110,203 17,937 Penalties and other interest expenses 19,325 57,550 Capitalized borrowing costs on Equipment under construction — (137,778) 537,179 524,074 Financial income Accretion interest on royalty receivable (132,809) — Net finance costs 404,370 524,074 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings (loss) per share | |
Summary of reconciliation between the number of basic and fully diluted shares outstanding | 2021 2020 $ $ Weighted daily average of Common shares 166,645,546 148,315,445 Dilutive effect of stock options — 5,375,592 Dilutive effect of warrants — 4,611,720 Weighted average number of diluted shares 166,645,546 158,302,757 Number of anti-dilutive stock options and warrants excluded from fully diluted earnings per share calculation 8,403,000 4,664,396 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related party transactions | |
Summary of total compensation to key management | 2021 2020 $ $ Salaries – key management 3,049,501 2,148,420 Pension contributions 59,377 18,529 Fees – Board of Directors 187,600 150,000 Share-based compensation – officers 6,182,573 1,989,144 Share-based compensation – Board of Directors 2,338,650 846,410 Other benefits – key management 237,903 544,402 Total compensation 12,055,604 5,696,905 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | |
Summary of amount denominated in foreign currency | 2021 2020 $ $ Cash 1,714,670 1,366,627 Accounts receivable 14,465,011 621,817 Accounts payable and accrued liabilities (1,023,999) (252,463) Total 15,155,682 1,735,981 |
Summary of credit risk and credit concentration | 2021 2020 % of total % of total Revenues revenues Revenues revenues $ % $ % Customer 1 7,308,191 24 9,523,353 53 Customer 2 7,019,953 23 4,444,022 26 Customer 3 6,417,373 21 — — Customer 4 3,551,900 11 — — Total 24,297,417 79 13,967,375 79 |
Summary of contractual amounts payable and maturities of financial liabilities | The following table summarizes the contractual amounts payable and maturities of financial liabilities and other liabilities as at December 31, 2021: Total Carrying contractual Less than value amount one year 2-3 years 4-5 years Over 5 years $ $ $ $ $ $ Accounts payable and accrued liabilities 10,069,177 10,069,177 10,069,177 — — — Term loans 190,905 263,232 85,731 67,561 62,823 47,117 Balance due on business combination 3,952,203 4,355,600 2,395,580 1,960,020 — — Lease liabilities 5,323,965 6,614,192 3,220,750 710,493 561,628 2,121,321 19,536,250 21,302,201 15,771,238 2,738,074 624,451 2,168,438 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income taxes | |
Summary of income tax expenses | 2021 2020 $ $ Current tax Current year (155,714) 327,412 Deferred tax Origination and reversal of temporary differences (5,095,595) 6,816,080 Recognition of previously unrecognized tax assets — (170,082) Change in unrecognized deductible temporary differences 4,511,349 (5,939,998) (584,246) 706,000 Income tax expense (recovery) (739,960) 1,033,412 |
Summary of reconciliation of effective tax rate | 2021 2020 $ $ Income (loss) before income taxes (39,171,899) 42,801,816 Income tax rates 26.5 % 26.5 % Income tax expense (recovery) at the combined basic Federal and Provincial tax rates (10,380,553) 11,342,481 Permanent differences 5,079,805 (5,072,219) Tax rate changes 8,334 37,443 Prior year adjustment 60,533 835,787 Recognition of previously unrecognized tax assets — (170,082) Change in unrecognized deductible temporary differences 4,511,349 (5,939,998) Other (19,428) — Income tax expense (recovery) (739,960) 1,033,412 |
Summary of recognized deferred tax assets and liabilities | Assets Liabilities Net 2021 2020 2021 2020 2021 2020 $ $ $ $ $ $ Non-capital losses carried forward 1,705,073 4,982,328 — — 1,705,073 4,982,328 Strategic investments — — (656,507) (4,919,499) (656,507) (4,919,499) Investment tax credits — — — (273,854) — (273,854) Royalty receivable — — (333,543) (280,900) (333,543) (280,900) Property and equipment — — (147,127) (25,273) (147,127) (25,273) Intangibles — — (468,167) — (468,167) — Deferred income — — (21,000) — (21,000) — Right-of-use assets net of liabilities — — (121,123) (188,802) (121,123) (188,802) Tax assets (liabilities) 1,705,073 4,982,328 (1,747,467) (5,688,328) (42,394) (706,000) Set off of tax (1,705,073) (4,982,328) 1,705,073 4,982,328 — — Net tax assets (liabilities) — — (42,394) (706,000) (42,394) (706,000) |
Summary of amounts and expiry dates of tax attributed and temporary difference for which no deferred tax assets was recognized | December 31, 2021 December 31, 2020 Federal Provincial Federal Provincial $ $ $ $ Research and development expenses, Without time limitation: 11,399,104 — 9,917,779 9,511,671 Federal research and development investment tax credits: 2029 299,881 — — — 2030 89,879 — — — 2031 223,759 — — — 2032 186,031 — — — 2033 105,216 — — — 2034 212,609 — 361,430 — 2035 488,555 — 488,555 — 2036 359,594 — 359,594 — 2037 253,885 — 253,885 — 2038 186,015 — 186,015 — 2039 465,535 — 411,540 — 2040 101,562 — 142,367 — 2041 359,115 — — — 3,331,636 — 2,203,386 — |
Summary of tax losses carried forward | December 31, 2021 December 31, 2020 Federal Provincial Italy Federal Provincial $ $ $ $ $ Tax losses carried forward: 2032 628,948 — — — — 2033 2,047,643 1,490,639 — — — 2034 589,007 589,007 — — — 2035 703,664 416,827 — — — 2036 3,579,827 3,440,527 — — — 2037 1,577,876 1,568,739 — — — 2038 5,716,536 5,650,620 — 3,715,297 — 2039 4,163,315 4,079,919 — 4,163,315 1,108,382 2040 2,710,255 2,659,255 — — — Indefinite — — 815,620 — — 21,717,071 19,895,533 815,620 7,878,612 1,108,382 |
Summary of other deductible temporary differences, without time limitation | December 31, 2021 December 31, 2020 Federal Provincial Federal Provincial $ $ $ $ Other deductible temporary differences, Without time limitation: Financing costs 1,100,504 1,100,504 1,538,633 1,538,633 Intangible assets 3,712,181 3,431,133 3,908,608 3,599,602 Capital losses 464,768 464,768 — — 5,277,453 4,996,405 5,447,241 5,138,235 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment information | |
Summary of total revenues and category of selected assets by geography | 2021 2020 $ $ Canada 7,395,312 5,828,186 United States 7,535,411 1,463,510 Europe 2,576,884 265,711 Mexico 786,154 174,818 Asia 420,268 — Israel 491 4,007 Saudi Arabia 7,019,954 9,523,353 China 134,664 296,031 South America 1,475,607 181,184 India 3,723,605 — Africa — 38,229 31,068,350 17,775,029 |
Significant accounting polici_4
Significant accounting policies - Estimated useful life of property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 3 years |
Machinery and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Automobile | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 7 years |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 20 years |
Significant accounting polici_5
Significant accounting policies - Estimated useful life of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Production backlog | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 30 months |
Patents and development costs | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 1 year |
Patents and development costs | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 21 years |
Significant accounting polici_6
Significant accounting policies - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)item | Dec. 31, 2020CAD ($) | |
Significant accounting policies | ||
Company's contribution to DPSP | $ 0 | $ 0 |
Number of CGUs identified for testing non-financial assets for impairment | item | 1 | |
Gain or loss recognized upon conversion or expiration of the conversion option | $ 0 |
Significant accounting judgme_2
Significant accounting judgments, estimates and assumptions (Details) | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Significant accounting judgments, estimates and assumptions | |
Payroll subsidies | $ 775,967 |
Business combination (Details)
Business combination (Details) - Pyro Green-Gas And Subsidiaries - CAD ($) | Dec. 31, 2021 | Aug. 11, 2021 |
Total consideration | ||
Consideration paid at closing | $ 1 | |
Contingent consideration | 3,841,999 | |
Consideration paid at closing and continent consideration | 3,842,000 | $ 3,842,000 |
Settlement of pre-existing loan receivable from Pyro Green-Gas | 1,744,400 | $ 1,700,000 |
Total consideration | 5,586,400 | |
Net assets acquired | ||
Current assets | 5,186,086 | |
ROU asset | 477,608 | |
Property and equipment | 42,552 | |
Intangible assets and Goodwill | 4,780,607 | |
Deferred income tax asset | 79,360 | |
Current liabilities | (4,507,907) | |
Non-current liabilities | (471,906) | |
Net assets acquired | $ 5,586,400 |
Business combination - Addition
Business combination - Additional information (Details) - CAD ($) | Aug. 11, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about business combination [line items] | |||
Interest accretion on promissory notes and on balance due on business combination | $ 110,203 | $ 17,937 | |
Pyro Green-Gas And Subsidiaries | |||
Disclosure of detailed information about business combination [line items] | |||
Maximum purchase price consideration in Cash | $ 4,355,600 | ||
Settlement of pre-existing loan receivable from Pyro Green-Gas | $ 1,700,000 | 1,744,400 | |
Expected period for completion of specified milestones by Pyro Green-Gas | 30 months | ||
Trade receivables recognized | 807,946 | ||
Allowance for doubtful accounts recognized | 3,300,000 | ||
Allowance for the doubtful accounts | 500,000 | ||
Goodwill not expected to be deductible for tax purposes | 2,700,000 | ||
Recognized revenue of Pyro Green-Gas | 6,800,000 | ||
Recognized net earnings of Pyro Green-Gas | 800,000 | ||
Acquisition-related costs | 100,000 | ||
Consideration paid at closing and continent consideration | $ 3,842,000 | 3,842,000 | |
Interest accretion on promissory notes and on balance due on business combination | $ 110,203 | ||
Discount rate | 8.00% |
Revenues (Details)
Revenues (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 31,068,350 | $ 17,775,029 |
PUREVAP | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 6,138,111 | 4,163,059 |
DROSRITE | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 7,940,771 | 9,976,696 |
Development and support related to systems supplied to the U.S. Navy | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 7,522,809 | 1,425,883 |
Torch related sales | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 2,084,511 | 1,452,455 |
Biogas upgrading and pollution controls | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | 6,800,090 | |
Other sales and services | ||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | ||
Revenue | $ 582,058 | $ 756,936 |
Revenues - Revenue from contrac
Revenues - Revenue from contracts with customers (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from contracts with customers: | ||
Sales of goods under long-term contracts recognized over time | $ 25,918,594 | $ 12,432,666 |
Sales of goods at a point of time | 1,533,910 | 1,730,273 |
Other revenue: | ||
Sale of intellectual properties (i) | 3,615,846 | 3,612,090 |
Revenue | $ 31,068,350 | $ 17,775,029 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of performance obligations [line items] | |||
Non-refundable fee for intellectual property | $ 2,400,000 | $ 3,300,000 | |
Percentage of royalty on sales | 10.00% | ||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | $ 43,458,148 | $ 29,999,009 | |
Expected period for revenue to be recognized | 3 years | ||
Less than one year | |||
Disclosure of performance obligations [line items] | |||
Transaction price allocated to unsatisfied contracts | $ 50,000 | ||
Additional variable consideration to be received | 200,000 | ||
2022 | |||
Disclosure of performance obligations [line items] | |||
Transaction price allocated to unsatisfied contracts | 100,000 | ||
Additional variable consideration to be received | 250,000 | ||
2023 | |||
Disclosure of performance obligations [line items] | |||
Transaction price allocated to unsatisfied contracts | 150,000 | ||
2024 | |||
Disclosure of performance obligations [line items] | |||
Transaction price allocated to unsatisfied contracts | $ 200,000 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Cash and cash equivalents | |||||
Restrictions on cash and cash equivalents | $ 0 | $ 0 | |||
Cash | 3,568,561 | 10,104,899 | |||
Guaranteed investment certificates | 8,633,952 | 8,000,000 | |||
Cash and cash equivalents | $ 12,202,513 | $ 12,202,513 | $ 18,104,899 | $ 18,104,899 | $ 34,431 |
Cash and cash equivalents - Add
Cash and cash equivalents - Additional Information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | ||
Guaranteed investment certificates amount | $ 157,058 | |
$3,000,000 bearing interest at a rate of 0.56% | ||
Disclosure of financial assets [line items] | ||
Guaranteed investment certificates amount | $ 3,000,000 | |
Percentage of Interest on Investments | 0.37% | |
Redeemable period without penalty | 60 days | |
$5,000,000 bearing interest at a rate of 0.53% | ||
Disclosure of financial assets [line items] | ||
Guaranteed investment certificates amount | $ 5,000,000 | |
Percentage of Interest on Investments | 0.86% | |
Redeemable period without penalty | 30 days | |
$633,952 bearing interest at a rate of 0.08% | ||
Disclosure of financial assets [line items] | ||
Guaranteed investment certificates amount | $ 633,952 | |
Percentage of Interest on Investments | 0.08% | |
Redeemable period without penalty | 30 days |
Accounts receivable (Details)
Accounts receivable (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Total trade accounts receivable | $ 16,518,913 | $ 1,007,224 |
Unbilled trade receivables | 1,132,911 | |
Other receivables1 | 270,536 | 931,041 |
Sales tax receivable | 850,167 | 258,477 |
Accounts receivable | 17,639,616 | 3,329,653 |
Amount receivable from sale of shares | 893,000 | |
Allowance for expected credit losses | 520,000 | |
1 - 30 days | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Total trade accounts receivable | 2,260,428 | 309,362 |
31 - 60 days | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Total trade accounts receivable | 44,838 | 226,713 |
61 - 90 days | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Total trade accounts receivable | 6,855,822 | 253,141 |
Greater than 90 days | ||
Disclosure Of Trade And Other Receivables [Line Items] | ||
Total trade accounts receivable | $ 7,357,825 | $ 218,008 |
Costs and profits in excess o_2
Costs and profits in excess of billings on uncompleted contracts (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)contract | Dec. 31, 2020CAD ($)contract | |
Costs and profits in excess of billings on uncompleted contracts | ||
Number of contracts held | contract | 14 | 7 |
Amount of billings on contracts | $ 16,676,700 | $ 8,378,093 |
Cumulative revenue | 21,599,410 | 9,451,726 |
Changes in the costs and profits in excess of billings on uncompleted contracts | 983,891 | 93,415 |
Changes due to measurement of progress on uncompleted contracts | $ 4,832,968 | $ 1,044,072 |
Investment tax credits (Details
Investment tax credits (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of attribution of expenses by nature to their function [line items] | ||
Investment Tax Credits | $ 202,472 | $ 131,871 |
Investment Tax Credits Earned in Prior Years | (706,000) | |
Research and development, net [note 10] | 2,535,987 | (731,077) |
Cost of Sales and Services | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Investment Tax Credits | 148,695 | 18,420 |
Research and Development Expense | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Investment Tax Credits | (684,709) | 1,141,468 |
Research and Development Expenses Gross | 2,000,853 | 775,824 |
Government Grants, Investment Tax Credit | 149,575 | 365,433 |
Research and development, net [note 10] | 2,535,987 | (731,077) |
Selling General and Administrative Expenses | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Investment Tax Credits | $ 32,486 | $ 30,000 |
Strategic investments - Compone
Strategic investments - Components (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | |||
Strategic investments | $ 14,901,659 | $ 39,991,750 | |
Beauce Gold Fields ("BGF") shares - level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Strategic investments | 123,095 | 123,095 | $ 133,354 |
HPQ Silicon Resources Inc. ("HPQ") shares - level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Strategic investments | 12,306,196 | 16,489,220 | 1,476,000 |
HPQ warrants - level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Strategic investments | $ 2,472,368 | $ 23,379,435 | $ 0 |
Strategic investments - Changes
Strategic investments - Changes (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quantity | ||||||
Number of warrants, outstanding, beginning balance | 25,844,600 | |||||
Number of instruments exercised | (16,250,000) | |||||
Number of warrants, outstanding, ending balance | 25,844,600 | 9,594,600 | 25,844,600 | |||
Amount | ||||||
Beginning balance | $ 39,991,750 | |||||
Ending balance | $ 39,991,750 | $ 14,901,659 | $ 39,991,750 | |||
Beauce Gold Fields ("BGF") shares - level 1 | ||||||
Quantity | ||||||
Number of warrants, outstanding, beginning balance | 1,025,794 | 1,025,794 | ||||
Additions | 0 | 0 | ||||
Received in lieu of payment of services rendered | 0 | |||||
Number of instruments exercised | 0 | 0 | ||||
Disposed | 0 | 0 | ||||
Change in the fair value | 0 | 0 | ||||
Number of warrants, outstanding, ending balance | 1,025,794 | 1,025,794 | 1,025,794 | |||
Amount | ||||||
Beginning balance | $ 123,095 | $ 133,354 | ||||
Additions | 0 | 0 | ||||
Received in lieu of payment of services rendered | 0 | |||||
Exercised | 0 | 0 | ||||
Disposed | 0 | 0 | ||||
Change in the fair value | 0 | (10,259) | ||||
Ending balance | $ 123,095 | $ 123,095 | $ 123,095 | |||
HPQ Silicon Resources Inc. ("HPQ") shares - level 1 | ||||||
Quantity | ||||||
Number of warrants, outstanding, beginning balance | 14,990,200 | 18,450,000 | ||||
Additions | 2,687,000 | 4,000,000 | 1,200,000 | 8,268,000 | 7,887,000 | |
Received in lieu of payment of services rendered | 4,394,600 | 4,394,600 | ||||
Number of instruments exercised | 16,250,000 | 1,500,000 | ||||
Disposed | (16,429,400) | (12,755,600) | (17,241,400) | |||
Change in the fair value | 0 | 0 | ||||
Number of warrants, outstanding, ending balance | 14,990,200 | 26,752,600 | 14,990,200 | |||
Amount | ||||||
Beginning balance | $ 16,489,220 | $ 1,476,000 | ||||
Additions | 8,070,109 | 3,395,742 | ||||
Received in lieu of payment of services rendered | 395,514 | |||||
Exercised | 11,700,000 | 540,000 | ||||
Disposed | $ (10,798,056) | (14,252,732) | (10,798,056) | |||
Change in the fair value | (9,700,401) | 21,480,020 | ||||
Ending balance | $ 16,489,220 | $ 12,306,196 | $ 16,489,220 | |||
HPQ warrants - level 3 | ||||||
Quantity | ||||||
Number of warrants, outstanding, beginning balance | 25,844,600 | 17,750,000 | ||||
Additions | 4,000,000 | 1,200,000 | 0 | 5,200,000 | ||
Received in lieu of payment of services rendered | 4,394,600 | 4,394,600 | ||||
Number of instruments exercised | 1,500,000 | 16,250,000 | 1,500,000 | |||
Disposed | 0 | 0 | ||||
Change in the fair value | 0 | 0 | ||||
Number of warrants, outstanding, ending balance | 25,844,600 | 9,594,600 | 25,844,600 | |||
Amount | ||||||
Beginning balance | $ 23,379,435 | $ 0 | ||||
Additions | 0 | 560,000 | ||||
Received in lieu of payment of services rendered | 0 | |||||
Exercised | (9,181,250) | (337,500) | ||||
Disposed | 0 | 0 | ||||
Change in the fair value | (11,725,817) | 23,156,935 | ||||
Ending balance | $ 23,379,435 | $ 2,472,368 | $ 23,379,435 |
Strategic investments - Details
Strategic investments - Details and activity of the HPQ warrants (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Disclosure of detailed information about financial instruments [line items] | |
Number of warrants, outstanding, beginning balance | 25,844,600 |
Addition | 0 |
Exercised | (16,250,000) |
Number of warrants, outstanding, ending balance | 9,594,600 |
August 21, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |
Number of warrants, outstanding, beginning balance | 16,250,000 |
Addition | 0 |
Exercised | (16,250,000) |
Number of warrants, outstanding, ending balance | 0 |
Exercise price ($) | $ / shares | $ 0.16 |
April 29, 2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Number of warrants, outstanding, beginning balance | 1,200,000 |
Addition | 0 |
Exercised | 0 |
Number of warrants, outstanding, ending balance | 1,200,000 |
Exercise price ($) | $ / shares | $ 0.10 |
June 2, 2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Number of warrants, outstanding, beginning balance | 4,394,600 |
Addition | 0 |
Exercised | 0 |
Number of warrants, outstanding, ending balance | 4,394,600 |
Exercise price ($) | $ / shares | $ 0.10 |
September 3, 2023 | |
Disclosure of detailed information about financial instruments [line items] | |
Number of warrants, outstanding, beginning balance | 4,000,000 |
Addition | 0 |
Exercised | 0 |
Number of warrants, outstanding, ending balance | 4,000,000 |
Exercise price ($) | $ / shares | $ 0.61 |
Strategic investments - Additio
Strategic investments - Additional information (Details) - CAD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||||||
Payments for purchase of investments | $ 10,588,857 | $ 4,158,240 | ||||
Accounts receivable | $ 893,000 | 893,000 | ||||
Number of instruments exercised | (16,250,000) | |||||
Proceeds from exercise of warrants | $ 13,085,197 | 5,623,322 | ||||
Gain From Initial Recognition Of Warrants Deferred | $ 510,573 | $ 859,998 | ||||
HPQ Silicon Resources Inc. ("HPQ") shares - level 1 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Number of instruments purchased | 2,687,000 | 4,000,000 | 1,200,000 | 8,268,000 | 7,887,000 | |
Payments for purchase of investments | $ 1,495,742 | $ 8,070,109 | ||||
Number of instruments received to settle trade receivables from HPQ | 4,394,600 | 4,394,600 | ||||
Number of instruments disposed | 16,429,400 | 12,755,600 | 17,241,400 | |||
Decrease in investments through disposals | $ 10,798,056 | $ 14,252,732 | $ 10,798,056 | |||
Gain on disposal of investments | $ 6,773,512 | $ 9,893,900 | ||||
Accounts receivable | $ 395,414 | |||||
Number of instruments exercised | 16,250,000 | 1,500,000 | ||||
HPQ warrants - level 3 | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Number of instruments purchased | 4,000,000 | 1,200,000 | 0 | 5,200,000 | ||
Number of instruments received to settle trade receivables from HPQ | 4,394,600 | 4,394,600 | ||||
Number of instruments disposed | 0 | 0 | ||||
Decrease in investments through disposals | $ 0 | $ 0 | ||||
Number of instruments exercised | 1,500,000 | 16,250,000 | 1,500,000 | |||
Proceeds from exercise of warrants | $ 202,500 | $ 2,518,750 | ||||
Gain From Initial Recognition Of Warrants Deferred | $ 9,181,250 | |||||
HPQ Silicon Resources Inc. | ||||||
Disclosure of detailed information about financial instruments [line items] | ||||||
Percentage of ownership interest held | 11.55% | 9.64% | 11.55% | |||
Payments for purchase of investments | $ 2,400,000 | |||||
Gain From Initial Recognition Of Warrants Deferred | $ 60,000 |
Strategic investments - Assumpt
Strategic investments - Assumptions used in estimating fair value of the HPQ warrants (Details) | Dec. 31, 2021M$ / sharesshares | Dec. 31, 2020M$ / sharesshares | Sep. 03, 2020M$ / sharesshares | Jun. 02, 2020$ / sharesMshares | Apr. 29, 2020$ / sharesMshares |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Number of warrants | 9,594,600 | 25,844,600 | |||
HPQ warrants issued on April 29, 2020 | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Number of warrants | 1,200,000 | 1,200,000 | 1,200,000 | ||
Exercise price ($) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | ||
HPQ warrants issued on April 29, 2020 | At fair value | Black-Scholes option pricing model | Fair value of the shares ($) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 0.46 | 1.05 | 0.04 | ||
HPQ warrants issued on April 29, 2020 | At fair value | Black-Scholes option pricing model | Risk free interest rate (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 1.22 | 0.2 | 0.30 | ||
HPQ warrants issued on April 29, 2020 | At fair value | Black-Scholes option pricing model | Expected volatility (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 89.88 | 115.3 | 97.45 | ||
HPQ warrants issued on April 29, 2020 | At fair value | Black-Scholes option pricing model | Contractual remaining life (in months) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | M | 19 | 28 | 36 | ||
HPQ warrants issued on June 2, 2020 | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Number of warrants | 4,394,600 | 4,394,600 | 4,000,000 | 4,394,600 | |
Exercise price ($) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | ||
HPQ warrants issued on June 2, 2020 | At fair value | Black-Scholes option pricing model | Fair value of the shares ($) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 0.46 | 1.05 | 1.05 | ||
HPQ warrants issued on June 2, 2020 | At fair value | Black-Scholes option pricing model | Risk free interest rate (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 1.22 | 0.2 | 0.20 | ||
HPQ warrants issued on June 2, 2020 | At fair value | Black-Scholes option pricing model | Expected volatility (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 94.01 | 114.8 | 114.80 | ||
HPQ warrants issued on June 2, 2020 | At fair value | Black-Scholes option pricing model | Contractual remaining life (in months) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | M | 20 | 29 | 29 | ||
HPQ warrants issued on Sept. 3, 2020 | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Number of warrants | 4,000,000 | 4,000,000 | |||
Exercise price ($) | $ / shares | $ 0.61 | $ 0.61 | $ 0.61 | ||
HPQ warrants issued on Sept. 3, 2020 | At fair value | Black-Scholes option pricing model | Fair value of the shares ($) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 0.46 | 1.05 | 1.05 | ||
HPQ warrants issued on Sept. 3, 2020 | At fair value | Black-Scholes option pricing model | Risk free interest rate (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 1.22 | 0.2 | 0.20 | ||
HPQ warrants issued on Sept. 3, 2020 | At fair value | Black-Scholes option pricing model | Expected volatility (%) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | 110.47 | 112.52 | 112.52 | ||
HPQ warrants issued on Sept. 3, 2020 | At fair value | Black-Scholes option pricing model | Contractual remaining life (in months) | |||||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | |||||
Significant unobservable input, assets | M | 23 | 32 | 32 |
Royalties receivable (Details)
Royalties receivable (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Royalties receivable | ||
Opening balance | $ 1,060,000 | $ 0 |
Accretion interest | 132,809 | 0 |
Royalties recognized during the year | 450,000 | 1,600,000 |
Discounting | (134,155) | (390,000) |
Amounts received during the year | (250,000) | (150,000) |
Balance at end of the year | 1,258,654 | 1,060,000 |
Current portion | 311,111 | 0 |
Non Current Portion | $ 947,543 | $ 1,060,000 |
Royalties receivable Additional
Royalties receivable Additional Information (Details) - CAD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2016 | Dec. 31, 2019 | |
Disclosure of performance obligations [line items] | ||||
Percentage of royalty on net sales | 10.00% | |||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | $ 43,458,148 | $ 29,999,009 | ||
Royalties receivable | $ 1,258,654 | $ 1,060,000 | $ 0 | |
Discounting rate for royalties | 12.50% | 12.50% | ||
HPQ 2016 Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price received | $ 200,000 | $ 150,000 | $ 1,000,000 | |
Percentage of royalty on net sales | 10.00% | |||
Royalties receivable | $ 250,000 | 1,100,000 | ||
HPQ Nano Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price received | $ 3,300,000 | 2,400,000 | ||
Percentage of royalty on net sales | 10.00% | |||
Royalties receivable | $ 200,000 | $ 500,000 | ||
HPQ Polvere contract | ||||
Disclosure of performance obligations [line items] | ||||
Percentage of royalty on net sales | 10.00% | |||
Less than one year | HPQ 2016 Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | $ 200,000 | |||
Less than one year | HPQ Nano Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price received | 50,000 | |||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 50,000 | |||
Less than one year | HPQ Polvere contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 50,000 | |||
2022 | HPQ 2016 Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 250,000 | |||
2022 | HPQ Nano Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 100,000 | |||
2023 | HPQ Nano Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 150,000 | |||
2024 | HPQ Nano Contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 200,000 | |||
2024 | HPQ Polvere contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 100,000 | |||
2025 | HPQ Polvere contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | 150,000 | |||
2026 | HPQ Polvere contract | ||||
Disclosure of performance obligations [line items] | ||||
Transaction price allocated to unsatisfied contracts from sale of intellectual property | $ 200,000 |
Deposits (Details)
Deposits (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current portion: | ||
Suppliers | $ 1,236,211 | $ 1,421,246 |
Security deposit on leased premises | 92,241 | |
Total current | 1,328,452 | 1,421,246 |
Non-current portion: | ||
Suppliers | 1,952 | 1,099 |
Security deposit on leased premises | 246,804 | 300,242 |
Total non-current | 248,756 | 301,341 |
Total Deposits | $ 1,577,208 | $ 1,722,587 |
Property and equipment - Compon
Property and equipment - Components & Movements (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | $ 2,529,570 | |
Additions | 2,120,893 | |
Ending balance | 3,712,937 | $ 2,529,570 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 4,598,857 | 4,002,767 |
Additions | 1,496,918 | 618,002 |
Impairment | (21,912) | |
Acquired through business combination | 42,552 | |
Ending balance | 6,138,327 | 4,598,857 |
Accumulated depreciation and amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (2,069,287) | (2,025,286) |
Depreciation | 356,103 | 63,118 |
Impairment | (19,117) | |
Ending balance | (2,425,390) | (2,069,287) |
Computer equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 40,547 | |
Ending balance | 211,706 | 40,547 |
Computer equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 549,659 | 521,988 |
Additions | 245,984 | 27,671 |
Acquired through business combination | 13,585 | |
Ending balance | 809,228 | 549,659 |
Computer equipment | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (509,112) | (491,906) |
Depreciation | 88,410 | 17,206 |
Ending balance | (597,522) | (509,112) |
Machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 180,257 | |
Ending balance | 410,577 | 180,257 |
Machinery and equipment | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,621,899 | 1,621,899 |
Additions | 384,092 | |
Acquired through business combination | 28,967 | |
Ending balance | 2,034,958 | 1,621,899 |
Machinery and equipment | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (1,441,642) | (1,421,613) |
Depreciation | 182,739 | 20,029 |
Ending balance | (1,624,381) | (1,441,642) |
Automobile | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 284,416 | |
Ending balance | 254,952 | 284,416 |
Automobile | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 306,164 | 21,912 |
Additions | 30,495 | 306,164 |
Impairment | (21,912) | |
Ending balance | 336,659 | 306,164 |
Automobile | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (21,748) | (18,782) |
Depreciation | 59,959 | 22,083 |
Impairment | (19,117) | |
Ending balance | (81,707) | (21,748) |
Leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 84,116 | |
Ending balance | 811,325 | 84,116 |
Leasehold improvements | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 180,901 | 165,006 |
Additions | 752,204 | 15,895 |
Ending balance | 933,105 | 180,901 |
Leasehold improvements | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | (96,785) | (92,985) |
Depreciation | 24,995 | 3,800 |
Ending balance | (121,780) | (96,785) |
Construction in progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,940,234 | |
Ending balance | 2,024,377 | 1,940,234 |
Construction in progress | Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,940,234 | 1,671,962 |
Additions | 84,143 | 268,272 |
Ending balance | $ 2,024,377 | $ 1,940,234 |
Leases - Right-of-use assets (D
Leases - Right-of-use assets (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | $ 3,701,000 | $ 3,742,769 |
Remeasurement of lease liabilities | 366,566 | |
Addition - business combination | 477,608 | |
Addition | 2,157,796 | |
Depreciation | (570,411) | (408,335) |
Ending balance | 5,765,993 | 3,701,000 |
Land and building | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 3,688,315 | 3,724,696 |
Remeasurement of lease liabilities | 366,566 | |
Addition - business combination | 477,608 | |
Addition | 2,157,796 | |
Depreciation | (566,182) | (402,947) |
Ending balance | 5,757,537 | 3,688,315 |
Computer equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning balance | 12,685 | 18,073 |
Depreciation | (4,228) | (5,388) |
Ending balance | $ 8,457 | $ 12,685 |
Leases - Summary of lease liabi
Leases - Summary of lease liabilities (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Beginning balance | $ 2,988,542 | $ 3,985,026 |
Remeasurement | 366,566 | |
Payments | (263,078) | (1,363,050) |
Additions | 2,120,893 | |
Addition - business acquisition | 477,608 | |
Ending balance | 5,323,965 | 2,988,542 |
Current portion | 2,934,236 | 225,977 |
Non-current portion | $ 2,389,729 | $ 2,762,565 |
Leases - Amount recognized in t
Leases - Amount recognized in the statement of comprehensive loss (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | ||
Depreciation of right-of-use assets | $ 570,411 | $ 408,335 |
Interest on lease liabilities | 307,691 | 211,666 |
Expense related to lease payments not included in the measurement of lease liabilities | $ 178,707 | $ 118,476 |
Leases - Maturity analysis of l
Leases - Maturity analysis of lease liabilities (Details) | Dec. 31, 2021CAD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | $ 6,614,192 |
Less than one year | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | 3,220,750 |
2023 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | 357,113 |
4-5 years | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | 229,332 |
Over 5 years | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | 2,121,321 |
2022 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | 353,380 |
2024 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Gross lease liabilities | $ 332,296 |
Leases (Details)
Leases (Details) - CAD ($) | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Remeasurement of lease liabilities | $ 366,566 | |||
Right-of-use assets [note 15] | $ 5,765,993 | 3,701,000 | $ 3,742,769 | |
Lease liabilities | 5,323,965 | 2,988,542 | 3,985,026 | |
Expense related to lease payments not included in the measurement of lease liabilities | 178,707 | 118,476 | ||
Trust beneficially owned by the controlling shareholder and CEO | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Annual rent increase (as a percent) | 2.00% | |||
Extension term of the lease | 5 years | |||
Prepayment of rent | $ 1,178,530 | |||
Remeasurement of lease liabilities | $ 366,566 | |||
Percentage of discount rate used for remeasurement of lease liabilities. | 4.00% | |||
Right-of-use assets [note 15] | 1,107,131 | 1,328,557 | 1,350,487 | |
Lease liabilities | $ 0 | 221,496 | 1,218,958 | |
Expense related to lease payments not included in the measurement of lease liabilities | $ 258,042 | $ 266,581 | ||
Period before due date agreed to convert the convertible loan | 1 year |
Intangible assets (Details)
Intangible assets (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | $ 905,614 | |
Acquired through business combination | 477,608 | |
Ending balance | 2,774,198 | $ 905,614 |
Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,013,263 | 817,357 |
Acquired through business combination | 2,120,000 | |
Additions | 214,497 | 305,420 |
Write-off | (85,544) | (109,514) |
Ending balance | 3,262,216 | 1,013,263 |
Accumulated depreciation and amortisation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (107,649) | (80,459) |
Amortization | 380,369 | 27,190 |
Ending balance | (488,018) | (107,649) |
Production backlog | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 0 | |
Ending balance | 1,766,667 | 0 |
Production backlog | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 0 | 0 |
Acquired through business combination | 2,120,000 | |
Additions | 0 | 0 |
Write-off | 0 | 0 |
Ending balance | 2,120,000 | 0 |
Production backlog | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 0 | 0 |
Amortization | 353,333 | 0 |
Ending balance | (353,333) | 0 |
Patents | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 710,267 | |
Ending balance | 828,692 | 710,267 |
Patents | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 768,392 | 572,486 |
Acquired through business combination | 0 | |
Additions | 214,497 | 305,420 |
Write-off | (85,544) | (109,514) |
Ending balance | 897,345 | 768,392 |
Patents | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (58,125) | (47,443) |
Amortization | 10,528 | 10,682 |
Ending balance | (68,653) | (58,125) |
Development costs | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 195,347 | |
Ending balance | 178,839 | 195,347 |
Development costs | Cost | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 244,871 | 244,871 |
Acquired through business combination | 0 | |
Additions | 0 | 0 |
Write-off | 0 | 0 |
Ending balance | 244,871 | 244,871 |
Development costs | Accumulated depreciation and amortisation | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (49,524) | (33,016) |
Amortization | 16,508 | 16,508 |
Ending balance | $ (66,032) | $ (49,524) |
Goodwill (Details)
Goodwill (Details) - Goodwill [member] | 12 Months Ended |
Dec. 31, 2021CAD ($) | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |
Discount rate | 8.00% |
Terminal growth rate | 2.00% |
Impairment loss | $ 0 |
Accounts payable and accrued _2
Accounts payable and accrued liabilities (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Trade And Other Current Payables [Line Items] | ||
Accounts payable | $ 5,457,259 | $ 2,206,249 |
Accrued liabilities | 3,730,048 | 1,701,554 |
Sale commissions payable | 737,364 | 731,671 |
Accounts payable and accrued liabilities [note 18] | 10,069,177 | 4,708,051 |
Controlling shareholder and CEO | ||
Disclosure Of Trade And Other Current Payables [Line Items] | ||
Accounts payable to the controlling shareholder and CEO | $ 144,506 | $ 68,577 |
Billings in excess of costs a_2
Billings in excess of costs and profits on uncompleted contracts (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Billings in excess of costs and profits on uncompleted contracts | ||
Amounts of payments to date received on contracts in progress. | $ 21,834,137 | $ 6,831,326 |
Payments to date received on contracts in progress | 31,234,368 | 13,424,298 |
Revenue that was included in contract liability balance at beginning of period | 6,268,910 | 1,282,217 |
Increase through cash received excluding amounts recognized as revenue | $ 9,076,169 | $ 4,790,536 |
Term loans (Details)
Term loans (Details) | 12 Months Ended | ||||||
Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Jul. 31, 2020 | May 31, 2020 | Mar. 18, 2020 | Jun. 30, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | $ 112,707 | $ 496,000 | |||||
Additions | 86,520 | 195,919 | |||||
Finance costs | (83,119) | ||||||
Accretion | 12,185 | 61,294 | |||||
Payments | (20,507) | (557,387) | |||||
Ending balance | 190,905 | 112,707 | |||||
Less current portion | (83,004) | (12,208) | |||||
Non-current portion of non-current borrowings | $ 107,901 | 100,499 | |||||
Interest rate | 3.00% | 12.00% | |||||
EDC Loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | $ 75,800 | ||||||
Additions | 157,058 | ||||||
Finance costs | (83,119) | ||||||
Accretion | 12,185 | 1,861 | |||||
Ending balance | 87,985 | 75,800 | |||||
Non-current portion of non-current borrowings | 87,985 | ||||||
Other Term Loans, one | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | 36,907 | ||||||
Additions | 38,861 | ||||||
Payments | (12,207) | (1,954) | |||||
Ending balance | 24,700 | 36,907 | |||||
Less current portion | (13,084) | ||||||
Non-current portion of non-current borrowings | $ 11,616 | ||||||
Interest rate | 6.95% | ||||||
Monthly instalment amount | $ 1,200 | ||||||
Other Term Loans, two | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Additions | 36,520 | ||||||
Payments | (8,300) | ||||||
Ending balance | 28,220 | ||||||
Less current portion | (19,920) | ||||||
Non-current portion of non-current borrowings | $ 8,300 | ||||||
Interest rate | 7.45% | 5.00% | |||||
Carrying amount of automobile pledged as security | $ 23,749 | ||||||
Canada Emergency Business Account Loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Additions | 50,000 | ||||||
Ending balance | 50,000 | ||||||
Less current portion | $ (50,000) | ||||||
Minimum repayment amount, if repaid by December 2023 | $ 0 | ||||||
Interest rate | 0.00% | ||||||
Other Term Loans, three | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | 110,933 | ||||||
Accretion | 4,267 | ||||||
Payments | (115,200) | ||||||
2019 SR&ED Tax Credit loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | 185,331 | ||||||
Accretion | 40,902 | ||||||
Payments | (226,233) | ||||||
Interest rate | 16.68% | ||||||
2018 SR&ED Tax Credit loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Beginning balance | 199,736 | ||||||
Accretion | 14,264 | ||||||
Payments | $ (214,000) | ||||||
Interest rate | 16.68% |
Term loans - Additional informa
Term loans - Additional information (Details) | Mar. 05, 2020CAD ($)installment | Dec. 31, 2021USD ($)CAD ($) | Dec. 31, 2020CAD ($) | Jul. 31, 2020 | Mar. 18, 2020 | Jun. 30, 2018 |
Disclosure of detailed information about borrowings [line items] | ||||||
Notional amount | $ 157,058 | |||||
Interest rate per annum (as a percent) | 3.00% | 12.00% | ||||
EDC Loan | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Repayable contribution agreement, maximum amount | $ 450,000 | |||||
Number of equal monthly instalments for repayment | installment | 60 | |||||
Repayment period | 24 months | |||||
Effective interest (as a percent) | 15.00% | |||||
Other Term Loans, two | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Number of equal monthly instalments for repayment | 1,660 | |||||
Interest rate per annum (as a percent) | 7.45% | 5.00% | ||||
Canada Emergency Business loan | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Repayment period | 24 months | |||||
Interest rate per annum (as a percent) | 0.00% | 8.00% | ||||
Minimum repayment amount, if repaid by December 2023 | $ 0 |
Convertible debentures (Details
Convertible debentures (Details) | 12 Months Ended |
Dec. 31, 2020CAD ($) | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | $ 2,898,358 |
Liability component at issuance | 804,578 |
Effective interest accretion | 178,624 |
Total of Convertible debentures | 3,881,560 |
Repayment of debentures including accommodation fees, in cash | (358,500) |
Conversion into common shares | (3,523,060) |
2020 Convertible loan | |
Disclosure of detailed information about borrowings [line items] | |
Liability component at issuance | 804,578 |
Effective interest accretion | 22,982 |
Total of Convertible debentures | 827,560 |
Conversion into common shares | (827,560) |
2018 Convertible debentures | |
Disclosure of detailed information about borrowings [line items] | |
Beginning balance | 2,898,358 |
Effective interest accretion | 155,642 |
Total of Convertible debentures | 3,054,000 |
Repayment of debentures including accommodation fees, in cash | (358,500) |
Conversion into common shares | $ (2,695,500) |
Convertible debentures - Record
Convertible debentures - Recording of 2020 Convertible loan at issuance date (Details) - CAD ($) | Mar. 18, 2020 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Net proceeds | $ 903,000 | |
Transaction cost | $ 83,119 | |
2020 Convertible loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Liability component | $ 804,578 | |
Conversion option recognized in equity, net of transaction cost of $47,338 | 98,422 | |
Net proceeds | 903,000 | |
Transaction cost | $ 47,338 |
Convertible debentures - Additi
Convertible debentures - Additional information (Details) - CAD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Mar. 18, 2020 |
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate | 3.00% | 12.00% | ||||
Equity component allocated to share capital | $ (827,560) | |||||
Notional amount | 157,058 | |||||
Principal amount redeemed | 358,500 | |||||
Common shares issued upon conversion of debt | 2,712,375 | |||||
Equity portion of convertible debentures | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Equity component allocated to share capital | 98,422 | |||||
Amount reclassified upon redemption | (40,779) | |||||
Common shares issued upon conversion of debt | (360,981) | |||||
Contributed Surplus | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Amount reclassified upon redemption | $ 40,779 | |||||
2020 Convertible loan | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate | 12.00% | |||||
Conversion price per share (in dollars per share) | $ 0.28 | |||||
Conversion of loan into shares (in shares) | 3,225,000 | |||||
2020 Convertible loan | Equity portion of convertible debentures | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Equity component allocated to share capital | $ 98,422 | |||||
2018 Convertible debentures | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Notional amount | $ 3,000,000 | |||||
Principal amount redeemed | $ 300,000 | |||||
Percentage of principal amount redeemed | 10.00% | |||||
Payment of onetime accommodation fee | $ 54,000 | |||||
Market rate used to discount cash flows (as a percent) | 17.50% | |||||
Value of the conversion option equity component was classified in the shareholders??? Equity (Deficiency) | $ 16,875 | |||||
Conversion of debentures into shares (in shares) | 3,369,375 | |||||
2018 Convertible debentures | Equity portion of convertible debentures | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Common shares issued upon conversion of debt | $ 360,981 | |||||
2018 Convertible debentures | Contributed Surplus | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Amount reclassified upon redemption | $ 40,779 |
Shareholders' equity - Common s
Shareholders' equity - Common shares and warrants (Details) | Dec. 30, 2021$ / shares | Dec. 17, 2021$ / shares | Oct. 14, 2021$ / sharesshares | Jun. 14, 2021$ / sharesshares | Jun. 01, 2021$ / sharesshares | Apr. 06, 2021USD ($)$ / sharesshares | Nov. 03, 2020CAD ($)$ / sharesshares | Oct. 26, 2020Y$ / shares | Sep. 30, 2020CAD ($)shares | Jul. 16, 2020Y$ / sharesshares | Jan. 02, 2020$ / sharesshares | Dec. 31, 2021CAD ($)$ / sharesshares | Dec. 31, 2020CAD ($)$ / sharesshares | Jan. 13, 2022shares | Oct. 31, 2020shares |
Disclosure of classes of share capital [line items] | |||||||||||||||
Gross proceeds | $ | $ 12,076,380 | ||||||||||||||
Share issue related cost paid in cash | $ | $ 1,640,052 | ||||||||||||||
Exercise price of common share purchase warrant | $ / shares | $ 1.52 | ||||||||||||||
Number of options exercised | 3,482,000 | 2,118,000 | |||||||||||||
Number of warrants exercised | shares | (8,146,483) | (7,060,617) | |||||||||||||
Net proceeds from exercise of options | $ | $ 1,109,818 | $ 759,400 | |||||||||||||
Proceeds from issuance of shares upon exercise of warrants | $ | 13,085,197 | 5,623,322 | |||||||||||||
Ascribed value from contributed surplus | $ | $ (1,109,818) | ||||||||||||||
Equity component allocated to share capital | $ | $ (827,560) | ||||||||||||||
Number of Class A common shares authorized to be repurchased | shares | 5,000,000 | 67,500,000 | |||||||||||||
Number of Class A common shares repurchased and cancelled | shares | 840,094 | 1,285,000 | |||||||||||||
Weighted average share price of Class A common shares | $ / shares | $ 4.96 | $ 0.75 | |||||||||||||
Total cash consideration for repurchase and cancellation of Class A common shares | $ | $ 4,183,617 | $ 964,391 | |||||||||||||
Commission for repurchase and cancellation of Class A common shares | $ | 12,845 | ||||||||||||||
Commission for repurchase and cancellation of Class A common shares, per share | $ / shares | $ 0 | ||||||||||||||
Excess of total consideration over the carrying amount of Class A common shares | $ | $ 4,183,617 | $ 964,391 | |||||||||||||
Percentage of total share capital that can be granted as stock options per person | 5.00% | ||||||||||||||
Number of options granted | 2,970,000 | 2,810,000 | |||||||||||||
Exercise price of stock options granted | $ / shares | $ 4.55 | $ 4.23 | |||||||||||||
Term of stock options granted | 60 | 60 | |||||||||||||
Number of options that will vest | shares | 250,000 | ||||||||||||||
Fair value of stock options | $ | $ 2.99 | $ 2.88 | |||||||||||||
Share-based compensation | $ | 9,762,745 | 4,244,608 | |||||||||||||
Stock-based compensation expense to be amortized | $ | $ 2,719,354 | $ 3,904,882 | |||||||||||||
Fair market value | $ / shares | $ 5.48 | $ 1.22 | |||||||||||||
Share options exercisable | $ / shares | $ 2.59 | ||||||||||||||
At the date of the grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
At the first anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
At the second anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
At the third anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Consultants | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Percentage of total share capital that can be granted as stock options per person | 2.00% | ||||||||||||||
Mr. Rodney Beveridge, Director & Ms. Rodayna Kafal, Director & Vice President | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Exercise price of stock options granted | $ / shares | $ 4 | ||||||||||||||
Term of stock options granted | Y | 5 | ||||||||||||||
Mr. Rodney Beveridge, Director | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 200,000 | ||||||||||||||
Ms. Rodayna Kafal, Director & Vice President | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 50,000 | ||||||||||||||
Director | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 1,700,000 | ||||||||||||||
Number of common shares entitled to purchase | shares | 1,700,000 | ||||||||||||||
Exercise price of stock options granted | $ / shares | $ 4.41 | ||||||||||||||
Employees | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | 760,000 | |||||||||||||
Number of common shares entitled to purchase | shares | 760,000 | ||||||||||||||
Exercise price of stock options granted | $ / shares | $ 8.47 | $ 4.41 | |||||||||||||
Term of stock options granted | Y | 5 | ||||||||||||||
Term of the stock options granted | 5 years | ||||||||||||||
Employees | Vesting of first 660,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options that will vest | shares | 660,000 | ||||||||||||||
Employees | Vesting of remaining 100,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | ||||||||||||||
Number of options that will vest | shares | 100,000 | ||||||||||||||
Employees | At the date of the grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 10.00% | ||||||||||||||
Employees | At the date of the grant | Vesting of first 660,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 50.00% | ||||||||||||||
Employees | At the date of the grant | Vesting of remaining 100,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Employees | At the first anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 20.00% | ||||||||||||||
Employees | At the first anniversary of the date of grant | Vesting of first 660,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 50.00% | ||||||||||||||
Employees | At the first anniversary of the date of grant | Vesting of remaining 100,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Employees | At the second anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 30.00% | ||||||||||||||
Employees | At the second anniversary of the date of grant | Vesting of remaining 100,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Employees | At the third anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 40.00% | ||||||||||||||
Employees | At the third anniversary of the date of grant | Vesting of remaining 100,000 stock options | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Board of Director, in his capacity of Chair of the Audit Committee of the Corporation | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Exercise price of stock options granted | $ / shares | $ 0.45 | ||||||||||||||
Term of stock options granted | 5 | ||||||||||||||
Number of options that will vest | shares | 100,000 | ||||||||||||||
Member of Board of Director | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | 200,000 | |||||||||||||
Exercise price of stock options granted | $ / shares | $ 3.61 | $ 6.59 | |||||||||||||
Number of options that will vest | shares | 200,000 | 200,000 | |||||||||||||
Term of the stock options granted | 5 years | 5 years | |||||||||||||
Member of Board of Director | At the date of the grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | 30.00% | |||||||||||||
Member of Board of Director | At the first anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | 35.00% | |||||||||||||
Member of Board of Director | At the second anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | 35.00% | |||||||||||||
Member of Board of Director | At the third anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Member of Board of Director, One | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | ||||||||||||||
Member of Board of Director, Two | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 200,000 | ||||||||||||||
President & Chief Executive Officer | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 1,920,000 | 150,000 | |||||||||||||
Exercise price of stock options granted | $ / shares | $ 3.13 | ||||||||||||||
Term of the stock options granted | 5 years | ||||||||||||||
Chief Financial Officer | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | ||||||||||||||
Exercise price of stock options granted | $ / shares | $ 5.04 | ||||||||||||||
Number of options that will vest | shares | 100,000 | ||||||||||||||
Term of the stock options granted | 5 years | ||||||||||||||
Chief Financial Officer | At the date of the grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 10.00% | ||||||||||||||
Chief Financial Officer | At the first anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 20.00% | ||||||||||||||
Chief Financial Officer | At the second anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 30.00% | ||||||||||||||
Chief Financial Officer | At the third anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 40.00% | ||||||||||||||
Officer | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of options granted | 100,000 | ||||||||||||||
Exercise price of stock options granted | $ / shares | $ 6.70 | ||||||||||||||
Number of options that will vest | shares | 100,000 | ||||||||||||||
Term of the stock options granted | 5 years | ||||||||||||||
Officer | At the date of the grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Officer | At the first anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Officer | At the second anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
Officer | At the third anniversary of the date of grant | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Vesting percentage | 25.00% | ||||||||||||||
2020 Convertible loan | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Loan amount converted | $ | $ 827,560 | ||||||||||||||
Conversion of loan into shares [note 21] (in shares) | shares | 3,225,000 | ||||||||||||||
Contributed Surplus | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Ascribed value from contributed surplus | $ | $ 364,000 | $ 484,807 | |||||||||||||
Equity portion of convertible debentures | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Equity component allocated to share capital | $ | 98,422 | ||||||||||||||
Equity portion of convertible debentures | 2020 Convertible loan | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Equity component allocated to share capital | $ | $ 98,422 | ||||||||||||||
Deficit | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Excess of total consideration over the carrying amount of Class A common shares | $ | $ 3,778,619 | $ 538,021 | |||||||||||||
Bought-deal short form prospectus offering | |||||||||||||||
Disclosure of classes of share capital [line items] | |||||||||||||||
Number of units issued | shares | 3,354,550 | ||||||||||||||
Issuance price per unit | $ / shares | $ 3.60 | ||||||||||||||
Gross proceeds | $ | $ 12,076,380 | ||||||||||||||
Share issue related cost paid in cash | $ | $ 1,640,052 | ||||||||||||||
Share issue related costs paid in compensation options | shares | 191,414 | ||||||||||||||
Number of units that each compensation option entitles | shares | 1 | ||||||||||||||
Exercise price of compensation option | $ / shares | $ 3.60 | ||||||||||||||
Number of common shares that each unit entitles | shares | 1 | ||||||||||||||
Number of common share purchase warrant that each unit entitles | shares | 1 | ||||||||||||||
Number of common shares that each common share purchase warrant entitles | shares | 1 | ||||||||||||||
Exercise price of common share purchase warrant | $ / shares | $ 4.50 | ||||||||||||||
Term of common share purchase warrant | 24 months | ||||||||||||||
Number of days by which the term of the common share purchase warrants can be accelerated by notice | 30 days | ||||||||||||||
VWAP Requirement, Share price trigger | $ / shares | $ 6.75 | ||||||||||||||
VWAP Requirement, Number of consecutive trading days | 20 days |
Shareholders' equity - Activity
Shareholders' equity - Activity in stock options (Details) | 12 Months Ended | |
Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares | |
Number of options | ||
Beginning balance | 9,040,000 | 8,438,000 |
Granted | 2,970,000 | 2,810,000 |
Exercised | (3,482,000) | (2,118,000) |
Forfeited | (125,000) | (90,000) |
Ending balance | 8,403,000 | 9,040,000 |
Weighted average exercise price | ||
Beginning balance | $ 1.57 | $ 0.37 |
Granted | 4.55 | 4.23 |
Exercised | 0.32 | 0.36 |
Forfeited | 4.41 | 1.02 |
Ending balance | $ 3.10 | $ 1.57 |
Shareholders' equity - Assumpti
Shareholders' equity - Assumptions used in measurement of fair value of stock options (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 2,970,000 | 2,810,000 | ||
Exercise price of stock options granted | $ / shares | $ 4.55 | $ 4.23 | ||
Fair value of each option under the Black Scholes pricing model ($) | $ | $ 2.99 | $ 2.88 | ||
Assumptions under the Black Scholes model: | ||||
Fair value of the market share ($) | $ / shares | $ 4.52 | $ 4.23 | ||
Risk free interest rate (%) | 1.11% | 0.38% | ||
Expected volatility (%) | 83.00% | 88.49% | ||
Expected life (number of months) | 60 | 60 | ||
December 30, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 100,000 | |||
Fair value of each option under the Black Scholes pricing model ($) | $ | $ 2.99 | $ 2.88 | ||
December 17, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 1,920,000 | |||
October 14, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 100,000 | |||
June 14, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 100,000 | |||
June 1, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 200,000 | |||
April 6, 2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of options granted | 550,000 |
Shareholders' equity - Outstand
Shareholders' equity - Outstanding options for the purchases of one common share per option (Details) | 12 Months Ended | ||
Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 9,040,000 | 8,438,000 | |
Granted | 2,970,000 | 2,810,000 | |
Exercised | (3,482,000) | (2,118,000) | |
Forfeited | 125,000 | 90,000 | |
Ending balance | 8,403,000 | 9,040,000 | |
Number of stock options vested | shares | 6,833,000 | ||
Exercise price per option | $ 3.10 | $ 1.57 | $ 0.37 |
September 25, 2016 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 3,000,000 | ||
Exercised | (3,000,000) | ||
Ending balance | 3,000,000 | ||
Exercise price per option | $ 0.18 | ||
November 3, 2017 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 2,420,000 | ||
Exercised | (20,000) | ||
Ending balance | 2,400,000 | 2,420,000 | |
Number of stock options vested | shares | 2,400,000 | ||
Exercise price per option | $ 0.58 | ||
May 10, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 250,000 | ||
Exercised | (250,000) | ||
Ending balance | 250,000 | ||
Exercise price per option | $ 0.52 | ||
July 3, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 300,000 | ||
Ending balance | 300,000 | 300,000 | |
Number of stock options vested | shares | 300,000 | ||
Exercise price per option | $ 0.51 | ||
October 29, 2018 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 70,000 | ||
Exercised | (30,000) | ||
Ending balance | 40,000 | 70,000 | |
Number of stock options vested | shares | 40,000 | ||
Exercise price per option | $ 0.52 | ||
September 29, 2019 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 200,000 | ||
Exercised | (100,000) | ||
Ending balance | 100,000 | 200,000 | |
Number of stock options vested | shares | 100,000 | ||
Exercise price per option | $ 0.51 | ||
January 2, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 100,000 | ||
Ending balance | 100,000 | 100,000 | |
Number of stock options vested | shares | 100,000 | ||
Exercise price per option | $ 0.45 | ||
July 16, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 2,450,000 | ||
Exercised | (82,000) | ||
Forfeited | 125,000 | ||
Ending balance | 2,243,000 | 2,450,000 | |
Number of stock options vested | shares | 1,343,000 | ||
Exercise price per option | $ 4.41 | ||
October 26, 2020 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Beginning balance | 250,000 | ||
Ending balance | 250,000 | 250,000 | |
Number of stock options vested | shares | 125,000 | ||
Exercise price per option | $ 4 | ||
April 6, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 550,000 | ||
Ending balance | 550,000 | ||
Number of stock options vested | shares | 320,000 | ||
Exercise price per option | $ 8.47 | ||
June 1, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 200,000 | ||
Ending balance | 200,000 | ||
Number of stock options vested | shares | 50,000 | ||
Exercise price per option | $ 6.59 | ||
June 14, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 100,000 | ||
Ending balance | 100,000 | ||
Number of stock options vested | shares | 25,000 | ||
Exercise price per option | $ 6.70 | ||
October 14, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 100,000 | ||
Ending balance | 100,000 | ||
Number of stock options vested | shares | 10,000 | ||
Exercise price per option | $ 5.04 | ||
December 17, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 1,920,000 | ||
Ending balance | 1,920,000 | ||
Number of stock options vested | shares | 1,920,000 | ||
Exercise price per option | $ 3.13 | ||
December 30, 2021 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted | 100,000 | ||
Ending balance | 100,000 | ||
Number of stock options vested | shares | 100,000 | ||
Exercise price per option | $ 3.61 |
Shareholders' equity - Share pu
Shareholders' equity - Share purchase warrants (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 8,151,758 | |
Number of warrants exercised | (8,146,483) | (7,060,617) |
Number of warrants expired | (5,275) | |
Number of warrants outstanding | 8,151,758 | |
Price per warrant | $ 1.52 | |
Number of compensation options | 191,414 | |
Proceeds from exercise of compensation options | $ 689,090 | |
Net proceeds from exercise of warrants | $ 12,396,107 | $ 5,623,322 |
Issuance of units - September 28, 2018 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 3,448,276 | |
Number of warrants exercised | (3,448,276) | |
Number of warrants outstanding | 3,448,276 | |
Price per warrant | $ 0.58 | |
Issuance of units - October 19, 2018 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 100,000 | |
Number of warrants exercised | (100,000) | |
Number of warrants outstanding | 100,000 | |
Price per warrant | $ 0.58 | |
Issuance of units - May 15, 2019 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 1,355,500 | |
Number of warrants exercised | (1,355,500) | |
Number of warrants outstanding | 1,355,500 | |
Price per warrant | $ 0.85 | |
Issuance of units - May 28, 2019 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 750,000 | |
Number of warrants exercised | (750,000) | |
Number of warrants outstanding | 750,000 | |
Price per warrant | $ 0.85 | |
Issuance of units - June 19, 2019 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 500,000 | |
Number of warrants exercised | (500,000) | |
Number of warrants outstanding | 500,000 | |
Price per warrant | $ 0.85 | |
Issuance of units - October 25, 2019 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 225,000 | |
Number of warrants exercised | (225,000) | |
Number of warrants outstanding | 225,000 | |
Price per warrant | $ 0.75 | |
Issuance of units - November 10, 2020 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 1,677,275 | |
Number of warrants exercised | (1,672,000) | |
Number of warrants expired | (5,275) | |
Number of warrants outstanding | 1,677,275 | |
Price per warrant | $ 4.50 | |
Issuance of warrants - November 10, 2020 | ||
Disclosure of classes of share capital [line items] | ||
Number of warrants outstanding | 95,707 | |
Number of warrants exercised | (95,707) | |
Number of warrants outstanding | 95,707 | |
Price per warrant | $ 4.50 |
Supplemental disclosure of ca_3
Supplemental disclosure of cash flow information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental disclosure of cash flow information | ||
Accounts receivable | $ (12,372,139) | $ (2,622,018) |
Costs and profits in excess of billings on uncompleted contracts | (3,849,077) | (950,653) |
Inventory | (839,352) | |
Investment tax credits receivable | 1,015,862 | (562,980) |
Royalties receivable | (65,845) | (1,060,000) |
Deposits | 145,379 | (1,394,160) |
Contract assets | (855,592) | |
Prepaid expenses | 39,111 | (39,042) |
Accounts payable and accrued liabilities | 1,953,208 | (148,678) |
Billings in excess of costs and profits on uncompleted contracts | 1,485,969 | 3,508,315 |
Income taxes | (99,072) | |
Net change in balances related to operations | $ (12,585,956) | $ (4,124,808) |
Supplemental disclosure on co_2
Supplemental disclosure on comprehensive income statement (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Government Grant [Line Items] | ||
Amortization and write-off of intangible assets | $ 465,913 | $ 27,190 |
Depreciation of property and equipment | 356,103 | 63,118 |
Employee benefits | 21,855,957 | 11,801,314 |
Share-based compensation | 9,762,745 | 4,244,608 |
Costs to obtain long term contacts | 161,219 | |
Grant received | 226,420 | 419,661 |
Grant received recorded in research and development | 149,575 | 365,433 |
Grant received recorded in selling, general and administrative | 76,845 | 54,228 |
Amount of inventories recognized in cost of sales | 326,279 | |
Depreciation of right-of-use assets | $ 570,411 | 408,335 |
CEWS | ||
Government Grant [Line Items] | ||
Grant received | 775,967 | |
Grant received recorded in cost of sales and services | 118,416 | |
Grant received recorded in research and development | 153,212 | |
Grant received recorded in selling, general and administrative | $ 504,339 |
Net finance costs (Details)
Net finance costs (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net finance costs | ||
Interest and fees on convertible debentures | $ 171,042 | |
Interest accretion of convertible debentures | 182,700 | |
Interest on term loans | $ 99,960 | 20,957 |
Interest on lease liabilities | 307,691 | 211,666 |
Interest accretion on promissory notes and on balance due on business combination | 110,203 | 17,937 |
Penalties and other interest expenses | 57,550 | |
Penalties And Other Interest Expenses On Financial Liabilities | 19,325 | |
Finance costs | 537,179 | 524,074 |
Capitalized borrowing costs on Equipment under construction | (137,778) | |
Financial income | ||
Accretion interest on royalties receivable | (132,809) | |
Net finance costs | $ 404,370 | $ 524,074 |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings (loss) per share | ||
Weighted daily average of Common shares | 166,645,546 | 148,315,445 |
Dilutive effect of stock options | 5,375,592 | |
Dilutive effect of warrants | 4,611,720 | |
Weighted average number of diluted shares | 166,645,546 | 158,302,757 |
Number of anti-dilutive stock options and warrants excluded from fully diluted earnings per share calculation | 8,403,000 | 4,664,396 |
Related party transactions (Det
Related party transactions (Details) - CAD ($) | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||||
Rent and property taxes | $ 274,934 | $ 274,106 | ||
Right-of-use assets [note 15] | 5,765,993 | 3,701,000 | $ 3,742,769 | |
Lease liabilities | 5,323,965 | 2,988,542 | 3,985,026 | |
Property taxes | 178,707 | 118,476 | ||
Common shares issued upon conversion of debt | 2,712,375 | |||
Loans repaid to related party | 295,000 | |||
Remeasurement | 366,566 | |||
Trust beneficially owned by the controlling shareholder and CEO | ||||
Disclosure of transactions between related parties [line items] | ||||
Extension term of the lease | 5 years | |||
Prepayment of rent | $ 1,178,530 | |||
Right-of-use assets [note 15] | 1,107,131 | 1,328,557 | 1,350,487 | |
Lease liabilities | 0 | 221,496 | 1,218,958 | |
Municipal tax amount | 260,000 | |||
Property taxes | 258,042 | $ 266,581 | ||
Debt converted | 903,000 | |||
Common shares issued upon conversion of debt | 3,225,000 | |||
Interest payable on debt | 58,050 | |||
Debt converted | 903,000 | |||
Amount due to related party for expense report, salary and vacation payable | 144,506 | 72,188 | ||
Interest accretion on promissory notes | $ 0 | 17,937 | ||
Loans repaid to related party | $ 295,000 | |||
Remeasurement | $ 366,566 | |||
Percentage of discount rate used for remeasurement of lease liabilities. | 4.00% |
Related party transactions - To
Related party transactions - Total compensation (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions | ||
Salaries - key management | $ 3,049,501 | $ 2,148,420 |
Pension contributions | 59,377 | 18,529 |
Fees - Board of Directors | 187,600 | 150,000 |
Share-based compensation - officers | 6,182,573 | 1,989,144 |
Share-based compensation - Board of Directors | 2,338,650 | 846,410 |
Other benefits - key management | 237,903 | 544,402 |
Total compensation | $ 12,055,604 | $ 5,696,905 |
Financial instruments (Details)
Financial instruments (Details) | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||||||
Cash and cash equivalents [note 7] | $ 12,202,513 | $ 12,202,513 | $ 18,104,899 | $ 18,104,899 | $ 34,431 | ||
Accounts receivable [note 8] | 17,639,616 | 3,329,653 | |||||
Accounts payable and accrued liabilities | (10,069,177) | (4,708,051) | |||||
Total | 14,006,785 | 13,797,579 | |||||
Currency risk | |||||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||||
Cash and cash equivalents [note 7] | 1,714,670 | 1,366,627 | |||||
Accounts receivable [note 8] | 14,465,011 | 621,817 | |||||
Accounts payable and accrued liabilities | (1,023,999) | (252,463) | |||||
Total | $ 15,155,682 | $ 1,735,981 | |||||
Reasonably possible change in valuation (as a percent) | 10.00% | ||||||
Amount of impact on pre-tax gain or loss | $ 1,516,000 | $ 174,000 |
Financial instruments - Sensiti
Financial instruments - Sensitivity analysis (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)customer | Dec. 31, 2020CAD ($)customer | |
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 31,068,350 | $ 17,775,029 |
Customer concentration | ||
IFRS Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 10.00% | |
Credit concentration | ||
IFRS Concentration Risk [Line Items] | ||
Number of major customers | customer | 4 | 2 |
Concentration risk (as a percent) | 79.00% | 79.00% |
Revenues | ||
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 24,297,417 | $ 13,967,375 |
Concentration risk (as a percent) | 79.00% | 79.00% |
Trade accounts receivable | ||
IFRS Concentration Risk [Line Items] | ||
Number of major customers | customer | 1 | 2 |
Revenues [note 6] | $ 12,063,636 | $ 1,211,177 |
Concentration risk (as a percent) | 73.00% | 69.00% |
Customer 1 | Revenues | ||
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 7,308,191 | $ 9,523,353 |
Concentration risk (as a percent) | 24.00% | 53.00% |
Customer 2 | Revenues | ||
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 7,019,953 | $ 4,444,022 |
Concentration risk (as a percent) | 23.00% | 26.00% |
Customer 3 | Revenues | ||
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 6,417,373 | |
Concentration risk (as a percent) | 21.00% | |
Customer 4 | Revenues | ||
IFRS Concentration Risk [Line Items] | ||
Revenues [note 6] | $ 3,551,900 | |
Concentration risk (as a percent) | 11.00% |
Financial instruments - Price R
Financial instruments - Price Risk (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Amount of impact on investments | $ 4,042,000 | |
Price risk | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Reasonably possible change in valuation (as a percent) | 25.00% | 25.00% |
Amount of impact on investments | $ 11,874,375 |
Financial instruments - Liquidi
Financial instruments - Liquidity Risk (Details) | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2019CAD ($) | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Accounts payable and accrued liabilities [note 18] | $ 10,069,177 | $ 4,708,051 | ||
Term loans, carrying value | 190,905 | 112,707 | $ 496,000 | |
Term loans, total contractual amount | 21,302,201 | |||
Borrowings | 190,905 | 112,707 | $ 496,000 | |
Proceeds from borrowings | $ 195,919 | |||
Carrying Value | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Accounts payable and accrued liabilities [note 18] | 19,536,250 | |||
Less than one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 15,771,238 | |||
2023 | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 2,738,074 | |||
4-5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 624,451 | |||
Over 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 2,168,438 | |||
Accounts Payable and Accrued Liabilities | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Accounts payable and accrued liabilities, total contractual amount | 10,069,177 | |||
Accounts Payable and Accrued Liabilities | Carrying Value | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Accounts payable and accrued liabilities [note 18] | 10,069,177 | |||
Accounts Payable and Accrued Liabilities | Less than one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Accounts payable and accrued liabilities, total contractual amount | 10,069,177 | |||
Term Loans | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 263,232 | |||
Borrowings | 263,232 | |||
Term Loans | Carrying Value | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 190,905 | |||
Borrowings | 190,905 | |||
Term Loans | Less than one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 85,731 | |||
Borrowings | 85,731 | |||
Term Loans | 2023 | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 67,561 | |||
Borrowings | 67,561 | |||
Term Loans | 4-5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 62,823 | |||
Borrowings | 62,823 | |||
Term Loans | Over 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 47,117 | |||
Borrowings | 47,117 | |||
Balance due on business combination | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Financial liabilities | 4,355,600 | |||
Balance due on business combination | Carrying Value | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Financial liabilities | 3,952,203 | |||
Balance due on business combination | Less than one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Financial liabilities | 2,395,580 | |||
Balance due on business combination | 2023 | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Financial liabilities | 1,960,020 | |||
Lease labilities | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 6,614,192 | |||
Lease labilities | Carrying Value | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 5,323,965 | |||
Borrowings | 5,323,965 | |||
Lease labilities | Less than one year | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 3,220,750 | |||
Lease labilities | 2023 | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 710,493 | |||
Lease labilities | 4-5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 561,628 | |||
Lease labilities | Over 5 years | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, total contractual amount | 2,121,321 | |||
Standby Letter of Credit | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 66,300 | $ 84,055 | ||
Borrowings | 66,300 | $ 84,055 | ||
Line of credit | ||||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||||
Term loans, carrying value | 500,000 | |||
Borrowings | 500,000 | |||
Proceeds from borrowings drawn against this facility | $ 436,000 |
Contingent liabilities (Details
Contingent liabilities (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Mar. 18, 2020 | |
Contingent liabilities | ||
Government grant received | $ 800,000 | |
Interest rate | 3.00% | 12.00% |
Capital management (Details)
Capital management (Details) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019CAD ($) |
Capital management | |||||
Working capital | $ 14,006,785 | $ 13,797,579 | |||
Shareholders' equity | 40,768,754 | 59,423,106 | $ (6,082,923) | ||
Debt | 190,905 | 112,707 | |||
Cash and cash equivalents [note 7] | $ 12,202,513 | $ 12,202,513 | $ 18,104,899 | $ 18,104,899 | $ 34,431 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax | ||
Current year | $ (155,714) | $ 327,412 |
Deferred tax | ||
Origination and reversal of temporary differences | (5,095,595) | 6,816,080 |
Recognition of previously unrecognized tax assets | (170,082) | |
Change in unrecognized deductible temporary differences | 4,511,349 | (5,939,998) |
Deferred tax | (584,246) | 706,000 |
Income tax expense (recovery) | $ (739,960) | $ 1,033,412 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of effective tax rate (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of effective tax rate | ||
Income (loss) before income taxes | $ (39,171,899) | $ 42,801,816 |
Income tax rates | 26.50% | 26.50% |
Income tax expense (recovery) at the combined basic Federal and Provincial tax rates | $ (10,380,553) | $ 11,342,481 |
Permanent differences | (5,079,805) | 5,072,219 |
Tax rate changes | 8,334 | 37,443 |
Prior year adjustment | 60,533 | 835,787 |
Recognition of previously unrecognized tax assets | (170,082) | |
Change in unrecognized deductible temporary differences | 4,511,349 | (5,939,998) |
Other | (19,428) | |
Income tax expense (recovery) | $ (739,960) | $ 1,033,412 |
Applicable statutory tax rates | 26.50% | 26.50% |
Income taxes - Deferred tax ass
Income taxes - Deferred tax assets and liabilities (Details) | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Deferred tax assets and liabilities [abstract] | ||||
Tax assets | $ 1,705,073 | $ 4,982,328 | ||
Tax liabilities | (1,747,467) | (5,688,328) | ||
Tax assets (liabilities) | $ (42,394) | $ (706,000) | ||
Net tax assets (liabilities) | (42,394) | (706,000) | ||
Non-capital losses carried forward | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax assets | 1,705,073 | 4,982,328 | ||
Tax assets (liabilities) | 447,191 | |||
Net tax assets (liabilities) | 1,705,073 | 4,982,328 | ||
Strategic investments | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (656,507) | (4,919,499) | ||
Net tax assets (liabilities) | (656,507) | (4,919,499) | ||
Investment tax credits | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (273,854) | |||
Tax assets (liabilities) | $ (706,000) | |||
Net tax assets (liabilities) | (273,854) | |||
Royalty receivable | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (333,543) | (280,900) | ||
Net tax assets (liabilities) | (333,543) | (280,900) | ||
Property and equipment | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (147,127) | (25,273) | ||
Tax assets (liabilities) | (2,219) | |||
Net tax assets (liabilities) | (147,127) | (25,273) | ||
Intangibles | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (468,167) | |||
Tax assets (liabilities) | (466,366) | |||
Net tax assets (liabilities) | (468,167) | |||
Deferred income | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (21,000) | |||
Tax assets (liabilities) | $ (21,000) | |||
Net tax assets (liabilities) | (21,000) | |||
Right-of-use assets net of liabilities | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax liabilities | (121,123) | (188,802) | ||
Net tax assets (liabilities) | (121,123) | (188,802) | ||
Set off of tax assets | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax assets (liabilities) | (1,705,073) | (4,982,328) | ||
Set off tax liabilities | ||||
Deferred tax assets and liabilities [abstract] | ||||
Tax assets (liabilities) | $ 1,705,073 | $ 4,982,328 |
Income taxes - Summary of unuse
Income taxes - Summary of unused tax losses and tax credits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liability (asset) at beginning of period | $ (706,000) | |
Recognized in profit or loss | 584,246 | $ (706,000) |
Recognized in business combination | 79,360 | |
Deferred tax liability (asset) at end of period | (42,394) | (706,000) |
Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Recognized in profit or loss | (194,958) | |
Recognized in business combination | 642,149 | |
Deferred tax liability (asset) at end of period | 447,191 | |
Investment tax credits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax liability (asset) at beginning of period | (706,000) | |
Recognized in profit or loss | 706,000 | (706,000) |
Deferred tax liability (asset) at end of period | $ (706,000) | |
Property and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Recognized in profit or loss | 621 | |
Recognized in business combination | (2,840) | |
Deferred tax liability (asset) at end of period | (2,219) | |
Intangibles | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Recognized in profit or loss | 93,583 | |
Recognized in business combination | (559,949) | |
Deferred tax liability (asset) at end of period | (466,366) | |
Deferred income | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Recognized in profit or loss | (21,000) | |
Deferred tax liability (asset) at end of period | $ (21,000) |
Income taxes - Unrecognized def
Income taxes - Unrecognized deferred tax assets and investment tax credit (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Research And Development Expenses, Without Time Limitation [Member] | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | $ 11,399,104 | $ 9,917,779 |
Research And Development Expenses, Without Time Limitation [Member] | Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 9,511,671 | |
Federal Research And Development Investment Tax Credits [Member] | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 3,331,636 | 2,203,386 |
Federal Research And Development Investment Tax Credits [Member] | 2029 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 299,881 | |
Federal Research And Development Investment Tax Credits [Member] | 2030 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 89,879 | |
Federal Research And Development Investment Tax Credits [Member] | 2031 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 223,759 | |
Federal Research And Development Investment Tax Credits [Member] | 2032 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 186,031 | |
Federal Research And Development Investment Tax Credits [Member] | 2033 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 105,216 | |
Federal Research And Development Investment Tax Credits [Member] | 2034 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 212,609 | 361,430 |
Federal Research And Development Investment Tax Credits [Member] | 2035 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 488,555 | 488,555 |
Federal Research And Development Investment Tax Credits [Member] | 2036 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 359,594 | 359,594 |
Federal Research And Development Investment Tax Credits [Member] | 2037 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 253,885 | 253,885 |
Federal Research And Development Investment Tax Credits [Member] | 2038 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 186,015 | 186,015 |
Federal Research And Development Investment Tax Credits [Member] | 2039 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 465,535 | 411,540 |
Federal Research And Development Investment Tax Credits [Member] | 2040 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | 101,562 | $ 142,367 |
Federal Research And Development Investment Tax Credits [Member] | 2041 | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Amount of tax attributed and temporary difference for which no deferred tax assets was recognized | $ 359,115 |
Income taxes - Income tax exp_2
Income taxes - Income tax expense - Tax losses carried forward (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | $ 5,277,453 | $ 5,447,241 |
Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 21,717,071 | 7,878,612 |
Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 4,996,405 | 5,138,235 |
Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 19,895,533 | 1,108,382 |
Italy. | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 815,620 | |
2032 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 628,948 | |
2033 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 2,047,643 | |
2033 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 1,490,639 | |
2034 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 589,007 | |
2034 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 589,007 | |
2035 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 703,664 | |
2035 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 416,827 | |
2036 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 3,579,827 | |
2036 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 3,440,527 | |
2037 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 1,577,876 | |
2037 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 1,568,739 | |
2038 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 5,716,536 | 3,715,297 |
2038 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 5,650,620 | |
2039 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 4,163,315 | 4,163,315 |
2039 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 4,079,919 | $ 1,108,382 |
2040 | Federal | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 2,710,255 | |
2040 | Provincial | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 2,659,255 | |
Indefinite | Italy. | Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | $ 815,620 |
Income taxes - Income tax exp_3
Income taxes - Income tax expense - Other deductible temporary differences (Details) - CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | $ 5,277,453 | $ 5,447,241 |
Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 4,996,405 | 5,138,235 |
Financing costs | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 1,100,504 | 1,538,633 |
Financing costs | Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 1,100,504 | 1,538,633 |
Intangibles | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 3,712,181 | 3,908,608 |
Intangibles | Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 3,431,133 | $ 3,599,602 |
Capital loss | Federal | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | 464,768 | |
Capital loss | Provincial | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses carried forward | $ 464,768 |
Segment information (Details)
Segment information (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment information | |
Number of operating segments | 1 |
Segment information - Total rev
Segment information - Total revenue and asstes by geography (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of geographical areas [line items] | |||
Total revenue | $ 31,068,350 | $ 17,775,029 | |
Property and equipment [note 14] | 3,712,937 | 2,529,570 | |
Right-of-use assets [note 15] | 5,765,993 | 3,701,000 | $ 3,742,769 |
Intangible assets [note 16] | 2,774,198 | 905,614 | |
Goodwill [note 17] | 2,660,607 | ||
Canada | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 7,395,312 | 5,828,186 | |
Property and equipment [note 14] | 3,685,974 | ||
Right-of-use assets [note 15] | 5,765,993 | ||
Intangible assets [note 16] | 2,774,198 | ||
Goodwill [note 17] | 2,660,607 | ||
United States | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 7,535,411 | 1,463,510 | |
Europe | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 2,576,884 | 265,711 | |
Mexico | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 786,154 | 174,818 | |
Asia | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 420,268 | ||
Israel | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 491 | 4,007 | |
Saudi Arabia | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 7,019,954 | 9,523,353 | |
China | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 134,664 | 296,031 | |
South America | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 1,475,607 | 181,184 | |
India | |||
Disclosure of geographical areas [line items] | |||
Total revenue | 3,723,605 | ||
Property and equipment [note 14] | $ 26,963 | ||
Africa | |||
Disclosure of geographical areas [line items] | |||
Total revenue | $ 38,229 |
Subsequent events (Details)
Subsequent events (Details) | Feb. 11, 2022shares |
Normal course issuer bid ("NCIB") | |
Disclosure of non-adjusting events after reporting period [line items] | |
Maximum number of common shares that can be purchased | 7,500,000 |