|
|
NXT Energy
Solutions Inc.
(Translation of registrant's name into
English)
|
|
Suite 302, 3320-17th Avenue
S.W.
Calgary, Alberta T3E
0B4
Canada
(Address of principal executive offices) |
|
September 30,
|
December 31,
|
|
2018
|
2017
|
Assets
|
|
|
Current
assets
|
|
|
Cash
and cash equivalents
|
$ 414,111
|
$ 166,618
|
Short-term
investments (Note 3)
|
5,000,000
|
950,000
|
Accounts
receivable
|
75,946
|
60,027
|
Prepaid
expenses
|
100,919
|
107,363
|
|
5,590,976
|
1,284,008
|
Long
term assets
|
|
|
Deposits
(Note 4)
|
533,925
|
518,765
|
Property
and equipment (Note 5)
|
709,916
|
778,685
|
Intellectual
property (Note 6)
|
20,075,983
|
21,339,533
|
|
|
|
|
26,910,800
|
$23,920,991
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
Current
liabilities
|
|
|
Accounts
payable and accrued liabilities (Note 7)
|
$ 496,763
|
$ 1,562,394
|
Income
taxes payable
|
-
|
201
|
Current
portion of capital lease obligation (Note 8)
|
41,820
|
39,579
|
|
538,583
|
1,602,174
|
Long-term
liabilities
|
|
|
Capital
lease obligation (Note 8)
|
53,452
|
85,118
|
Other
liabilities (Note 17)
|
401,194
|
517,669
|
Asset
retirement obligation
|
58,254
|
56,702
|
Deferred
charges (Note 14)
|
79,730
|
81,919
|
|
592,630
|
741,408
|
|
1,131,213
|
2,343,582
|
Commitments
and contingencies (Note 14)
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Common
shares (Note 9): - authorized unlimited
|
|
|
Issued:
68,573,558 (2017 – 58,161,133) common shares
|
96,627,407
|
88,121,286
|
Contributed
capital (Note 9)
|
9,466,926
|
8,195,075
|
Deficit
|
(81,025,681)
|
(75,449,886)
|
Accumulated
other comprehensive income
|
710,935
|
710,934
|
|
25,779,587
|
21,577,409
|
|
$ 26,910,800
|
$23,920,991
|
|
Signed "George
Liszicasz"
|
|
Signed "Bruce G.
Wilcox"
|
|
|
Director
|
|
Director
|
|
|
For the
three months
|
For
the nine months ended
|
||
|
ended
September 30
|
ended
September 30
|
||
|
2018
|
2017
|
2018
|
2017
|
Revenue
|
|
|
|
|
Survey
revenue (Note 15)
|
$-
|
$-
|
$-
|
$-
|
Expenses
|
|
|
|
|
Survey
costs, net
|
271,337
|
261,658
|
788,771
|
1,037,217
|
General
and administrative expenses
|
1,031,346
|
1,013,148
|
3,123,384
|
3,712,780
|
Stock
based compensation expense (Note 11)
|
110,446
|
162,724
|
559,521
|
497,005
|
Amortization
expense (Notes 5 & 6)
|
447,942
|
454,163
|
1,342,325
|
1,443,413
|
|
1,861,071
|
1,891,693
|
5,814,001
|
6,690,415
|
Other expenses (income)
|
|
|
|
|
Interest
expense (income), net
|
(26,171)
|
199
|
(40,378)
|
4,925
|
Foreign
exchange (gain) loss
|
10,614
|
9,507
|
478
|
26,788
|
Intellectual
property and other expenses
|
178
|
33,957
|
(12,645)
|
79,323
|
Gain
on extinguishment of liability (Note 18)
|
(185,661)
|
-
|
(185,661)
|
-
|
|
(201,040)
|
43,663
|
(238,206)
|
111,036
|
|
|
|
|
|
Loss before income taxes
|
(1,660,031)
|
(1,935,356)
|
(5,575,795)
|
(6,801,451)
|
Income
tax expense
|
|
|
|
|
Current
|
-
|
-
|
-
|
72,587
|
|
|
|
|
|
Net Loss and comprehensive Loss
|
$(1,660,031)
|
$(1,935,356)
|
$(5,575,795)
|
$(6,874,038)
|
Net Loss per share (Note 10)
|
|
|
|
|
Basic
|
(0.02)
|
(0.04)
|
(0.09)
|
(0.13)
|
Diluted
|
(0.02)
|
(0.04)
|
(0.09)
|
(0.13)
|
|
For the
three months
|
For the
nine months
|
||
|
ended
September 30
|
ended
September 30
|
||
|
2018
|
2017
|
2018
|
2017
|
Cash provided by (used in):
|
|
|
|
|
Operating activities
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$(1,660,031)
|
$(1,935,356)
|
$(5,575,795)
|
$(6,874,038)
|
Items
not affecting cash:
|
|
|
|
|
Stock
based compensation expense (Note 11)
|
110,446
|
162,724
|
559,521
|
497,005
|
Amortization
expense (Notes 5 & 6)
|
447,942
|
454,163
|
1,342,325
|
1,443,413
|
Non-cash
changes to asset retirement obligation
|
517
|
1,500
|
1,552
|
4,500
|
Valuation
allowance of Bolivian Tax Credits
|
-
|
-
|
-
|
207,682
|
Foreign
Exchange
|
22,938
|
-
|
(673)
|
-
|
Amortization
of deferred gain on sale of aircraft (Note 17)
|
(38,825)
|
(38,825)
|
(116,475)
|
(64,709)
|
Deferred
rent (Note 14)
|
(729)
|
(729)
|
(2,189)
|
(2,189)
|
Gain
on settlement of liabilities (Note 18)
|
(185,661)
|
-
|
(185,661)
|
-
|
Change
in non-cash working capital balances (Note 13)
|
(296,252)
|
(292,569)
|
(904,132)
|
(162,160)
|
|
60,376
|
286,264
|
694,268
|
1,923,542
|
Net
cash used in operating activities
|
(1,599,655)
|
(1,649,092)
|
(4,881,527)
|
(4,950,496)
|
Financing activities
|
|
|
|
|
Proceeds
from exercise of stock options
|
-
|
-
|
5,067
|
30,420
|
Net
Proceeds from Private Placement (Note 9)
|
821,052
|
-
|
9,213,384
|
-
|
Repayment
of capital lease obligation (Note 8)
|
(9,967)
|
(9,252)
|
(29,425)
|
(27,341)
|
Net
cash from financing activities
|
811,085
|
(9,252)
|
9,189,026
|
3,079
|
Investing activities
|
|
|
|
|
Proceeds
from sale / purchase of property & equipment, net
|
-
|
-
|
(10,006)
|
3,133,533
|
Increase
in short-term investments
|
250,000
|
1,440,000
|
(4,050,000)
|
1,393,090
|
Net
cash from (used in) investing activities
|
250,000
|
1,440,000
|
(4,060,006)
|
4,526,623
|
Net
increase (decrease) in cash and cash equivalents
|
(538,570)
|
(218,344)
|
247,493
|
(420,794)
|
Cash
and cash equivalents, beginning of the period
|
952,681
|
288,046
|
166,618
|
490,496
|
Cash
and cash equivalents, end of the period
|
$414,111
|
$69,702
|
$414,111
|
$69,702
|
Supplemental information
|
|
|
|
|
Cash
interest (received)
|
(32,373)
|
(1,778)
|
(43,304)
|
(6,504)
|
Cash
taxes paid
|
-
|
-
|
-
|
72,287
|
|
For the nine months
|
|
|
ended September 30
|
|
|
2018
|
2017
|
Common Shares
|
|
|
Balance
at beginning of the period (Note 9)
|
$88,121,286
|
$85,966,393
|
Issuance
of Common Stock on Private Placement (Note 9)
|
8,358,610
|
-
|
Issued
upon exercise of stock options (Note 9)
|
5,067
|
30,420
|
Transfer
from contributed capital upon exercise of stock
options
|
6,441
|
-
|
Equity-based
transaction with non-employee
|
-
|
16,200
|
Finder’s
fee
|
136,003
|
-
|
|
|
|
Balance
at end of the period
|
96,627,407
|
86,013,013
|
Contributed Capital
|
|
|
Balance
at beginning of the period
|
8,195,075
|
7,613,719
|
Issuance
of warrants on Private Placement
|
718,771
|
-
|
Recognition
of stock based compensation expense
|
559,521
|
497,005
|
Contributed
capital transferred to common shares
|
|
|
upon
exercise of stock options
|
(6,441)
|
-
|
|
|
|
Balance
at end of the period
|
9,466,926
|
8,110,724
|
Deficit
|
|
|
Balance
at beginning of the period
|
(75,449,886)
|
(66,479,488)
|
Net
loss and comprehensive loss for the period
|
(5,575,795)
|
(6,874,038)
|
|
|
|
Balance
at end of the period
|
(81,025,681)
|
(73,353,526)
|
Accumulated Other Comprehensive Income
|
|
|
Balance
at beginning and end of the period
|
710,935
|
710,935
|
Total Shareholders' Equity at end of the period
|
$25,779,587
|
$ 21,481,146
|
|
For the period ended
|
|
|
September 30,
|
December 31,
|
|
2018
|
2017
|
90
Day non-redeemable GIC
|
$900,000
|
$-
|
One
year cashable GIC’s
|
4,100,000
|
950,000
|
|
5,000,000
|
950,000
|
|
For the period ended
|
|
|
September 30,
|
December 31,
|
|
2018
|
2017
|
Building
|
$43,310
|
$43,310
|
Aircraft
|
490,615
|
475,455
|
|
533,925
|
518,765
|
|
Cost
|
Accumulated
|
Net
book
|
For the period
ended September 30, 2018
|
Base
|
amortization
|
value
|
Survey
equipment
|
$684,890
|
$624,207
|
$60,683
|
Computers and
software
|
1,256,101
|
1,194,823
|
61,278
|
Furniture and other
equipment
|
528,420
|
502,822
|
25,598
|
Leasehold
improvements
|
1,165,108
|
602,751
|
562,357
|
|
3,634,519
|
2,924,603
|
709,916
|
|
Cost
|
Accumulated
|
Net
book
|
For the period
ended December 31, 2017
|
Base
|
amortization
|
value
|
Survey
equipment
|
$684,890
|
$612,717
|
$72,173
|
Computers and
software
|
1,246,095
|
1,177,653
|
68,442
|
Furniture and other
equipment
|
528,420
|
498,304
|
30,116
|
Leasehold
improvements
|
1,165,108
|
557,154
|
607,954
|
|
3,624,513
|
2,845,828
|
778,685
|
|
For the period
ended
|
|
|
September 30,
|
December
31,
|
|
2018
|
2017
|
Intellectual
property acquired
|
$25,271,000
|
$25,271,000
|
Accumulated
amortization
|
(5,195,017)
|
(3,931,467)
|
|
20,075,983
|
21,339,533
|
|
For the period ended
|
|
|
September 30,
|
December 31,
|
|
2018
|
2017
|
Accrued
liabilities related to:
|
|
|
Consultants
and professional fees
|
$172,366
|
$353,333
|
Board
of Directors' fees
|
22,500
|
175,000
|
Deferred
gain on sale of aircraft (current)
|
155,301
|
155,301
|
Payroll
(wages payable and vacation pay)
|
35,713
|
551,110
|
|
385,880
|
1,234,744
|
Trade
payables and other
|
110,883
|
327,650
|
|
496,763
|
1,562,394
|
|
For the period ended
|
|
|
September 30,
|
December 31,
|
|
2018
|
2017
|
Capital
lease obligation
|
$95,272
|
$124,697
|
Less
current portion
|
(41,820)
|
(39,579)
|
|
53,452
|
85,118
|
Year ended December
31:
|
|
2018
|
$10,154
|
2019
|
42,603
|
2020
|
42,515
|
|
$95,272
|
|
For the nine
month periods ended
|
|||
|
September 30, 2018
|
September 30, 2017
|
||
|
# of shares
|
$ amount
|
# of shares
|
$ amount
|
As
at the beginning of the period
|
58,161,133
|
88,121,286
|
53,856,509
|
85,966,393
|
Shares
issued during the period:
|
|
|
|
|
Issuance
of Common Stock
|
|
|
|
|
on
the Private Placement
|
10,264,946
|
8,358,610
|
-
|
-
|
Exercise
of stock options
|
6,667
|
5,067
|
-
|
30,420
|
Transfer
from contributed capital on the
|
|
|
|
|
exercise
of stock options
|
-
|
6,441
|
-
|
-
|
Finder’s
Fee
|
140,812
|
136,003
|
-
|
-
|
Equity-based
transaction with non-employee
|
-
|
-
|
-
|
16,200
|
|
|
|
|
|
As
at the end of the period
|
68,573,558
|
96,627,407
|
53,856,509
|
86,013,013
|
|
For the three months
|
For the nine months
|
||
|
Ended September 30
|
ended September 30
|
||
|
2018
|
2017
|
2018
|
2017
|
Comprehensive
loss for the period
|
$(1,660,031)
|
(1,935,356)
|
(5,575,795)
|
(6,874,038)
|
Basic
|
68,413,668
|
53,856,509
|
64,404,493
|
53,856,509
|
|
|
|
|
|
Diluted
|
68,413,668
|
53,856,509
|
64,404,493
|
53,856,509
|
Net Income (loss)
per share – Basic
|
$(0.02)
|
$(0.04)
|
$(0.09)
|
$(0.13)
|
Net Income (loss)
per share – Diluted
|
$(0.02)
|
$(0.04)
|
$(0.09)
|
$(0.13)
|
|
|
|
Average
remaining
|
Exercise
price
|
# of
options
|
# of
options
|
contractual
|
per
share
|
outstanding
|
exercisable
|
life (in
years)
|
$1.13
|
1,000,000
|
333,333
|
4.3
|
$1.35
|
286,900
|
286,900
|
1.3
|
$1.39
|
22,500
|
22,500
|
0.8
|
$1.45
|
37,500
|
37,500
|
3.2
|
$1.48
|
37,500
|
37,500
|
2.8
|
$1.50
|
50,000
|
50,000
|
2.8
|
$1.57
|
30,000
|
30,000
|
1.4
|
$1.61
|
25,000
|
25,000
|
0.4
|
$1.67
|
150,000
|
150,000
|
1.1
|
$1.73
|
92,600
|
75,933
|
2.2
|
$1.82
|
165,000
|
110,000
|
2.1
|
$1.83
|
22,500
|
22,500
|
0.2
|
$2.10
|
300,000
|
300,000
|
2.0
|
$1.44
|
2,219,500
|
1,481,166
|
2.9
|
|
For the nine
months
|
For the year
ended
|
||
|
Ended
September 30, 2018
|
December 31,
2017
|
||
|
|
weighted
|
|
weighted
|
|
# of
stock
|
average
|
# of
stock
|
average
|
|
options
|
exercise
price
|
options
|
exercise
price
|
Options
outstanding, start of the period
|
1,648,667
|
$1.60
|
3,221,001
|
$1.33
|
Granted
|
1,000,000
|
$1.13
|
-
|
$-
|
Exercised
|
(6,667)
|
$0.76
|
(7,334)
|
$0.76
|
Expired
|
(42,500)
|
$0.81
|
(1,190,000)
|
$0.91
|
Forfeited
|
(380,000)
|
$1.40
|
(375,000)
|
$1.48
|
Options
outstanding, end of the period
|
2,219,500
|
$1.44
|
1,648,667
|
$1.60
|
Options
exercisable, end of the period
|
1,481,166
|
$1.57
|
1,268,867
|
$1.59
|
|
For the period
ended
|
|
|
September
30,
|
December
31,
|
|
2018
|
2017
|
Expected dividends
paid per common share
|
Nil
|
Nil
|
Expected life in
years
|
5.0
|
5.0
|
Expected volatility
in the price of common shares
|
65%
|
85%
|
Risk free interest
rate
|
1.68%
|
0.75%
|
Weighted average
fair market value per share at grant date
|
$1.13
|
$0.99
|
|
For the three months
|
For the nine months
|
||
|
ended September 30
|
ended September 30
|
||
|
2018
|
2017
|
2018
|
2017
|
Accounts
receivable
|
63,261
|
(27,985)
|
(15,919)
|
144,771
|
Prepaid
expenses and deposits
|
41,318
|
(23,564)
|
6,445
|
(529,133)
|
Accounts
payable and accrued liabilities
|
(400,831)
|
(241,003)
|
(894,457)
|
222,300
|
Income
taxes payable
|
-
|
(17)
|
(201)
|
(98)
|
|
(296,252)
|
(292,569)
|
(904,132)
|
(162,160)
|
|
|
|
|
|
Portion
attributable to:
|
|
|
|
|
Operating
activities
|
(296,252)
|
(292,569)
|
(904,132)
|
(162,160)
|
Financing
activities
|
-
|
-
|
-
|
-
|
Investing
activities
|
-
|
-
|
-
|
-
|
|
(296,252)
|
(292,569)
|
(904,132)
|
(162,160)
|
|
Office Premises
|
Aircraft
|
2018
|
$146,811
|
$153,398
|
2019
|
587,244
|
613,593
|
2020
|
590,221
|
613,593
|
2021
|
599,153
|
613,593
|
2022
|
599,153
|
153,398
|
|
2,522,582
|
2,147,575
|
Thereafter,
2023 through 2025
|
1,647,670
|
-
|
|
4,170,252
|
2,147,575
|
|
For the three months
|
For the nine months
|
||
|
ended September 30,
|
ended September 30,
|
||
|
2018
|
2017
|
2018
|
2017
|
|
$32,266
|
$11,796
|
$241,422
|
$83,263
|
|
Q3-18
Sep 30
|
Q2-18
Jun 30
|
Q1-18
Mar 31
|
Q4-17
Dec 31
|
Survey
revenue
|
$-
|
$-
|
$-
|
$-
|
Net
loss
|
(1,660,031)
|
(1,961,114)
|
(1,954,650)
|
(2,096,360)
|
|
|
|
|
|
Loss
per share - basic
|
$(0.02)
|
$(0.03)
|
$(0.03)
|
$(0.04)
|
Loss
per share - diluted
|
$(0.02)
|
$(0.03)
|
$(0.03)
|
$(0.04)
|
|
Q3-17
Sep 30
|
Q2-17
Jun 30
|
Q1-17
Mar 31
|
Q4-16
Dec 31
|
Survey
revenue
|
$-
|
$-
|
$-
|
$-
|
Net
loss
|
(1,935,356)
|
(2,723,956)
|
(2,214,726)
|
(2,356,848)
|
|
|
|
|
|
Loss
per share - basic
|
$(0.04)
|
$(0.05)
|
$(0.04)
|
$(0.04)
|
Loss
per share - diluted
|
$(0.04)
|
$(0.05)
|
$(0.04)
|
$(0.04)
|
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Survey
revenue
|
$-
|
$-
|
$-
|
$-
|
Expenses:
|
|
|
|
|
Survey
costs
|
271,337
|
261,658
|
788,771
|
1,037,217
|
General
and administrative
|
1,031,346
|
1,013,148
|
3,123,384
|
3,712,780
|
Stock-based
compensation
|
110,446
|
162,724
|
559,521
|
497,005
|
Amortization
of property & equipment
|
447,942
|
454,163
|
1,342,325
|
1,443,413
|
|
1,861,071
|
1,891,693
|
5,814,001
|
6,690,415
|
|
|
|
|
|
Other
Expenses (income):
|
|
|
|
|
Interest
Expense (income), net
|
(26,171)
|
199
|
(40,378)
|
4,925
|
Foreign
exchange (gain) loss
|
10,614
|
9,507
|
478
|
26,788
|
Other
expense (recovery)
|
(185,483)
|
33,957
|
(198,306)
|
79,323
|
|
(201,040)
|
43,663
|
(238,206)
|
111,036
|
Income
(loss) before income taxes
|
(1,660,031)
|
(1,935,356)
|
(5,575,795)
|
(6,801,451)
|
|
|
|
|
|
Income
tax expense :
|
-
|
-
|
-
|
72,587
|
|
|
|
|
|
Net
Income (loss) for the period
|
$(1,660,031)
|
$(1,935,356)
|
(5,575,795)
|
(6,874,038)
|
|
|
|
|
|
Net
Income (loss) per share - basic
|
$(0.02)
|
$(0.04)
|
$(0.09)
|
$(0.13)
|
Net
Income (loss) per share - diluted
|
$(0.02)
|
$(0.04)
|
$(0.09)
|
$(0.13)
|
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Aircraft
lease costs
|
$154,571
|
$152,795
|
$455,632
|
$259,846
|
Amortization
of deferred gain
|
(38,825)
|
(38,826)
|
(116,475)
|
(64,709)
|
Aircraft
operations
|
155,532
|
146,624
|
449,441
|
470,843
|
Survey
projects
|
59
|
1,066
|
173
|
371,237
|
Total
Survey Expenses, net
|
271,337
|
261,659
|
788,771
|
1,037,217
|
G&A
Expenses
|
Q3-18
|
Q3-17
|
net change
|
%
|
Salaries,
benefits and consulting charges
|
$513,220
|
$548,582
|
$(35,362)
|
(6%)
|
Board,
professional fees, & public company costs
|
180,188
|
217,666
|
(37,478)
|
(17%)
|
Premises
and administrative overhead
|
192,642
|
192,340
|
302
|
(0%)
|
Business
development
|
134,329
|
35,917
|
98,412
|
274%
|
Bolivian
overhead
|
10,967
|
18,643
|
(7,676)
|
(41%)
|
Total
G&A Expenses
|
1,031,346
|
1,013,148
|
18,198
|
2%
|
G&A
Expenses
|
2018
YTD
|
2017
YTD
|
net
change
|
%
|
Salaries,
benefits and consulting charges
|
$1,536,395
|
$2,032,678
|
$(496,283)
|
(24%)
|
Board,
professional fees, & public company costs
|
648,747
|
654,768
|
(6,021)
|
(1%)
|
Premises
and administrative overhead
|
562,103
|
650,330
|
(88,227)
|
(14%)
|
Business
development
|
343,683
|
167,999
|
175,684
|
105%
|
Bolivian
overhead
|
32,456
|
207,005
|
(174,549)
|
(84%)
|
Total
G&A Expenses
|
3,123,384
|
3,712,780
|
(589,396)
|
(16%)
|
Other
Expenses
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Interest
(income) expense, net
|
$(26,171)
|
$199
|
$(40,378)
|
$4,925
|
Unrealized
foreign exchange loss
|
10,614
|
9,507
|
478
|
26,788
|
Intellectual
property and R&D
|
1,046
|
31,916
|
(9,918)
|
72,943
|
Gain
on extinguishment of liability
|
(185,661)
|
-
|
(185,661)
|
-
|
Other,
net
|
(868)
|
2,041
|
(2,727)
|
6,380
|
Total
Other Expenses, net
|
(201,040)
|
43,663
|
(238,206)
|
111,036
|
Amortization Expenses
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Property
and equipment
|
$26,759
|
$32,980
|
$78,775
|
$179,863
|
Intellectual
property
|
421,183
|
421,183
|
1,263,550
|
1,263,550
|
Total
Amortization Expenses
|
447,942
|
454,163
|
1,342,325
|
1,443,413
|
Net
Working Capital Summary
|
Sept
30,
2018
|
Dec
31,
2017
|
net
change as at Q3-18
|
Current
assets (current liabilities)
|
|
|
|
Cash,
cash equivalents and Short-Term Investments
|
$5,414,111
|
$1,116,618
|
$4,297,493
|
Accounts
receivable
|
75,946
|
60,027
|
15,919
|
Prepaid
expenses and deposits
|
100,919
|
107,363
|
(6,444)
|
Accounts
payable and accrued liabilities
|
(496,763)
|
(1,562,394)
|
1,065,631
|
Income
taxes payable
|
-
|
(201)
|
201
|
Current
portion of capital lease obligation
|
(41,820)
|
(39,579)
|
(2,241)
|
Net
Working Capital
|
5,052,393
|
(318,166)
|
5,370,559
|
Accounts
Payable Summary
|
Sept
30,
2018
|
Dec
31,
2017
|
net
change as at Q3-18
|
Trade
accounts payable
|
$(50,638)
|
$(430,100)
|
$379,462
|
Deferred
gain on sale of aircraft
|
(155,301)
|
(155,301)
|
-
|
Deferred
employee salaries
|
-
|
(380,548)
|
380,548
|
Deferred
director /Advisory Board payable
|
(46,772)
|
(213,181)
|
166,409
|
Accrued
liabilities
|
(208,339)
|
(212,701)
|
4,362
|
Vacation
pay accrued
|
(35,713)
|
(170,563)
|
134,850
|
Total
Accounts Payable
|
(496,763)
|
(1,562,394)
|
1,065,631
|
Cash
Flow Summary - from / (used in)
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Operating
activities
|
$(1,599,655)
|
$(1,649,092)
|
$(4,881,527)
|
$(4,950,496)
|
Financing
activities
|
811,085
|
(9,252)
|
9,189,026
|
3,079
|
Investing
activities
|
250,000
|
1,440,000
|
(4,060,006)
|
4,526,623
|
Net
source (use) of cash
|
(538,570)
|
(218,344)
|
247,493
|
(420,794)
|
Cash
and cash equivalents, start of period
|
952,681
|
288,046
|
166,618
|
490,496
|
Cash
and cash equivalents, end of period
|
414,111
|
69,702
|
414,111
|
69,702
|
|
|
|
|
|
Cash
and cash equivalents
|
414,111
|
69,702
|
414,111
|
69,702
|
Short-term
investments
|
5,000,000
|
60,000
|
5,000,000
|
60,000
|
Total
Cash and Short-Term Investments
|
5,414,111
|
129,702
|
5,414,111
|
129,702
|
Operating
Activities
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Net
income (loss) for the period
|
$(1,660,031)
|
$(1,935,356)
|
$(5,575,795)
|
$(6,874,038)
|
Total
non-cash expense items
|
356,628
|
578,833
|
1,598,400
|
2,085,702
|
|
(1,303,403)
|
(1,356,523)
|
(3,977,395)
|
(4,788,336)
|
Change
in non-cash working
|
|
|
|
|
capital
balances
|
(296,252)
|
(292,569)
|
(904,132)
|
(162,160)
|
Total
Cash from (used in) Operating Activities
|
(1,599,655)
|
(1,649,092)
|
(4,881,527)
|
(4,950,496)
|
Financing
Activities
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Proceeds
from exercise of stock options
|
$-
|
$-
|
$5,067
|
$30,420
|
Net
proceeds from Private Placement
|
821,052
|
-
|
9,213,384
|
-
|
Repayment
of capital lease obligation
|
(9,967)
|
(9,252)
|
(29,425)
|
(27,341)
|
Total
Cash from (used in) Financing Activities
|
811,085
|
(9,252)
|
9,189,026
|
3,079
|
Investing
Activities
|
Q3-18
|
Q3-17
|
2018
YTD
|
2017
YTD
|
Sale/(purchase)
of property and equipment
|
$-
|
$-
|
$(10,006)
|
$3,133,533
|
Decrease
(increase) in short-term investments
|
250,000
|
1,440,000
|
(4,050,000)
|
1,393,090
|
Total
Cash from (used in) Investing Activities
|
250,000
|
1,440,000
|
(4,060,006)
|
4,526,623
|
For
the period ended December 31
|
Office
Premises
|
Aircraft
|
2018
|
$146,811
|
$153,398
|
2019
|
587,244
|
613,593
|
2020
|
590,221
|
613,593
|
2021
|
599,153
|
613,593
|
2022
|
599,153
|
153,398
|
|
2,522,582
|
2,147,575
|
Thereafter,
2023 through 2025
|
1,647,670
|
-
|
|
4,170,252
|
2,147,575
|
|
As at
|
||
|
November 14,
2018
|
September 30,
2018
|
December 31,
2017
|
Common
shares issued and outstanding:
|
|
|
|
Common
shares
|
68,573,558
|
68,573,558
|
58,161,133
|
Common
shares issuable upon exercise:
|
|
|
|
Warrants
|
3,421,646
|
3,421,646
|
-
|
Stock
options
|
2,319,500
|
2,219,500
|
1,648,667
|
Total
Share Capital and Dilutive Securities
|
74,314,704
|
74,214,704
|
59,809,800
|
|
For
the three-month period
|
For
the nine-month period
|
||
|
ended
September 30
|
ended
September 30
|
||
|
2018
|
2017
|
2018
|
2017
|
Legal
Fees
|
$32,266
|
$11,796
|
$241,422
|
$83,263
|