6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the period ended June 30, 2019

Commission File Number: 001-12033

Nymox Pharmaceutical Corporation

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(l): ¨

Indicate by check mark if the registrant is submitting Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby

furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____________

Exhibits
99.1	Quarterly Report for the Quarter ended June 30, 2019
99.2	CEO Certifications
99.3	CFO Certifications

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NYMOX PHARMACEUTICAL CORPORATION
(Registrant)
By:	/s/ Paul Averback, MD
	Paul Averback, MD
	President and Chief Executive Officer

Date: August 14, 2019

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EX-99.1

EXHIBIT 99.1

 MANAGEMENT'S DISCUSSION AND ANALYSIS

(in US dollars)

This is Management’s discussion and analysis (“MD&A”) comments on the Corporation’s operations, performance and financial condition as of and for the three and six months ended June 30, 2019 and 2018. This MD&A should be read together with the unaudited condensed interim Consolidated Financial Statements and the related notes. This MD&A is dated August 14, 2019. All amounts in this report are in U.S. dollars, unless otherwise noted.

Except as otherwise indicated, all financial information contained in this MD&A and in the unaudited condensed interim Consolidated Financial Statements has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The unaudited condensed interim Consolidated Financial Statements and this MD&A were reviewed by the Corporation’s Audit Committee and were approved by our Board of Directors.

Additional information about the Corporation can be obtained on EDGAR at www.sec.gov.

Overview

Corporate Profile

Nymox Pharmaceutical Corporation is a biopharmaceutical company focused on developing its drug candidate, NX-1207, for the treatment of BPH and the treatment of low-grade localized prostate cancer. Since 1989, the Corporation’s activities and resources have been directed primarily on developing certain pharmaceutical technologies. Since 2002, Nymox has been developing its novel proprietary drug candidate, NX-1207, for the treatment of benign prostatic hyperplasia (“BPH”). NX-1207 showed positive results for the treatment of BPH in Phase 1 and 2 clinical trials in the U.S. and in follow-up studies of available subjects from the completed clinical trials. In 2009, Nymox started two pivotal double blind placebo controlled Phase 3 trials for NX-1207, NX02-0017 and NX02-0018, that were conducted at investigational sites across the U.S. with a total enrollment of approximately 1,000 patients. Nymox also initiated subsequent open-label U.S. re-injection Phase 3 safety studies, NX02-0020 and NX02-0022. The NX02-0017 study completed patient enrollment and participation in December 2013 and the NX02-0018 study in May 2014. Top-line results of the Phase 3 NX02-0017 and NX02-0018 U.S. clinical trials of NX-1207 for BPH at 12 months post-treatment were not statistically significant compared to placebo.

The Corporation is in the process of further data analysis and assessments of the two studies, and expects to continue its efforts to work on the development program. Nymox is also developing NX-1207 for the treatment of low-grade localized prostate cancer. A Phase 2 study of NX-1207 for low grade localized prostate cancer was started in 2012 with positive results reported in 2014. The Corporation is in the process of working towards definitive studies for this indication. The Corporation also has an extensive patent portfolio covering its marketed products, its investigational drug as well as other therapeutic and diagnostic indications. Nymox developed the AlzheimAlert™ test, which is certified with a CE Mark in Europe. Nymox developed and markets NicAlert™ and TobacAlert™; which are tests that use urine or saliva to detect use of and exposure to tobacco products. NicAlert™ has received clearance from the FDA and is also certified with a CE Markin Europe. TobacAlert™ is the first test of its kind to accurately measure second and third hand smoke exposure in individuals.

 

1

In order to achieve its business plan and the realization of its assets and liabilities in the normal course of operations, the Corporation anticipates the need to raise additional debt or capital in the near term and/or achieve sales and other revenue-generating activities. Management has taken steps to reduce expenditures going forward in the short term by staff reductions, deferral of management salaries, and operational changes.

The top-line failure of the two Phase 3 studies of NX-1207 for BPH materially affects the Corporation’s current ability to fund its operations, meet its cash flow requirements, realize its assets and discharge its obligations. Management believes that current cash balances as of June 30, 2019 will be sufficient to meet the Company’s cash needs for the next 12 months.

We have incurred operating losses throughout our history. Management believes that such operating losses will continue for at least the next few years as a result of expenditures relating to research and development of our potential therapeutic products.

On July 27, 2015 Nymox announced initial clinical results from its ongoing analysis and assessment of its Phase 3 development program in BPH. The Company announced that the U.S. long-term extension prospective double-blind Phase 3 BPH studies NX02-0017 and NX02-0018 of fexapotide triflutate (NX-1207) for BPH had successfully met the pre-specified primary endpoint of long-term symptomatic statistically significant benefit superior to placebo. Fexapotide showed an excellent safety profile with no evidence of drug-related short-term or long-term toxicity nor any significant related molecular side effects in the 2 studies. As a result of the clinical benefits observed in the long-term extension trial, the Company announced that it intends to meet with regulatory authorities in various jurisdictions around the world and in due course explore the possibility to proceed to file for approval where possible.

On August 2, 2018, the Corporation opened its new office in Irvine, California. The Corporation will maintain all Quality Assurance activities from this office.

Forward Looking Statements

Certain statements included in this MD&A may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations, and are subject to important risks, uncertainties and assumptions. This forward-looking information includes amongst others, information with respect to our objectives and the strategies to achieve these objectives, as well as information with respect to our beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe” or “continue” or the negatives of these terms or variations of them or similar terminology. We refer you to the Corporation’s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, as well as the “Risk Factors” section of this MD&A, and of our Form 20-F, for a discussion of the various factors that may affect the Corporation’s future results. The results or events predicted in such forward-looking information may differ materially from actual results or events.

Differences between Bahamas and NASDAQ Corporate Governance Practices

Nymox Pharmaceutical Corporation is subject to corporate governance requirements imposed by NASDAQ because Nymox Pharmaceutical’s Shares are listed on the Nasdaq Capital Market.

Nymox Pharmaceutical Corporation is incorporated in the Bahamas. Under NASDAQ Marketplace Rule 5615(a)(3), NASDAQ listed non-US companies may, in general, follow their home country corporate governance practices in lieu of certain NASDAQ corporate governance requirements. A NASDAQ listed non- U.S. company is required to provide a general summary of the significant differences between its home country corporate governance practices and NASDAQ corporate governance requirements to its shareholders, either in the company’s annual report filed on Form 20-F or on the company’s website. Nymox is committed to a high standard of corporate governance. As such, Nymox endeavors to comply with most of the NASDAQ corporate governance practices, with the following exceptions. Under NASDAQ Marketplace Rule 5635(c), shareholders must be given the opportunity to vote on any material amendment to the terms of a company’s equity compensation plan (i.e., an amendment to the plan to include repricing provisions). There is no requirement under Bahamas law that equity compensation plan, or any material amendment thereto, be subject to shareholder approval. Nymox will continue to follow the Bahamas practice and require any material amendment to the terms of its plan to be subject only to approval by its board of directors.

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Also under NASDAQ Marketplace Rule 5635(d), shareholders must be given the opportunity to vote prior to the issuance of securities in connection with a transaction other than a public offering involving: (1) the sale, issuance or potential issuance by the Company of common stock (or securities convertible into or exercisable for common stock) at a price less than the greater of book or market value which together with sales by officers, directors or substantial shareholders of the Company equals 20% or more of common stock or 20% or more of the voting power outstanding before the issuance; or (2) the sale, issuance or potential issuance by the Company of common stock (or securities convertible into or exercisable common stock) equal to 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance for less than the greater of book or market value of the stock. There is no requirement under Bahamas law that stock issuances pursuant to private placements be subject to shareholder approval. Nymox will continue to follow the Bahamas practice and require private placement transactions to be subject only to approval by its board of directors.

Results of Operations

Six Months Ended June 30	2019			2018
Total revenues	$	50,123		$	240,607
Net loss	$	(8,013,672	)	$	(5,082,592	)
Loss per share (basic & diluted)	$	(0.12	)	$	(0.09	)

Results of Operations – the three and six months ended June 30, 2019 compared to the three and six months ended June 30, 2018

Net losses were $5,143,701, or $0.08 per share, for the quarter, and $8,013,672, or $0.12 per share, for the six months ended June 30, 2019, compared to net losses $2,418,503, or $0.04 per share, for the quarter, and $5,082,592, or $0.09 per share, for the six months ended June 30, 2018. The $2,931,080 increase in net losses for the six months ended June 30, 2019 compared to the same period in 2018 is due to increase of $1,868,869 in professional fees and consulting fee, an increase of $609,823 in clinical trial expenditures. The $2,725,197 increase in net losses for the quarter ended June 30, 2019 compared to same period in 2018 is mainly due to an increase of $1,604,196 in professional fees, an increase of $696,968 in clinical trial expenditures. The basic and diluted weighted average number of common shares outstanding for the three and six months ended June 30, 2019 were 68,393,289 and 67,723,217 respectively, compared to basic and diluted weighted average number of common shares of 59,272,777 and 58,170,384 respectively for the three and six months ended June 30, 2018.

Revenues

Revenues from sales of goods amounted to $19,781 for the quarter, and $50,123 for the six months ended June 30, 2019, compared with $88,441 for the quarter, and $240,607 for the six months ended June 30, 2018.

Research and Development

Research and development expenditures were $2,336,457 for the quarter, and $4,065,643 for the six months ended June 30, 2019, compared with $1,549,086 for the quarter, and $3,505,872 for the six months ended June 30, 2018. Research and development expenditures include costs incurred in advancing Nymox’s BPH product candidate NX-1207 through clinical trials, as well as costs related to its R&D pipeline. Research and development expenditures also include stock compensation charges of $304,695 for the quarter and $656,450 in the six months ended June 30, 2019 compared with $456,982 for the quarter, and $960,385 for the six months ended June 30, 2018. The $559,771 increase in R&D expense for the six months ended June 30, 2019 compared to the same period in 2018 is mainly due to increase of $609,823 in clinical trial expenditures. The $787,371 increase in R&D expense for the quarter ended June 30, 2019 compared to same period in 2018 is mainly due to an increase of $696,968 in clinical trial expenditures.

3

Marketing Expenses

Marketing expenditures were nil for the quarter, and $nil for the six months ended June 30, 2019, compared with nil for the quarter, and $52 for the six months ended June 30, 2018. The Corporation expects that marketing expenditures will increase when new products are launched on the market.

General and Administrative Expenses

General and administrative expenses were $2,875,915 for the quarter, and $4,061,207 for the six months ended June 30, 2019, compared with $934,430 for the quarter, and $1,728,292 for the six months ended June 30, 2018. General and administrative expenditures included stock compensation charges of $984,985 for the quarter and $1,323,701 for the six months ended June 30, 2019 compared with $456,982 for the quarter, and $984,985 in the comparative period in 2018. The increase of $2,332,915 in general and administrative expenses for the six month period is primarily attributable to an increase of $1,816,015 in professional fees which includes the issuance of one million shares valued at $1,330,000 to a related party for their significant contributions and development of the company from year 2014 to 2019 and an increase of $363,318 in employee stock compensation charges. The increase in general and administrative expenses of $1,941,485 for the quarter ended June 30, 2019 is mainly attributable to an increase of $1,532,033 in professional fees which includes the issuance of one million shares valued at $1,330,000 to a related party for their significant contributions and development of the company from year 2014 to 2019 and an increase of $528,003 in employee stock compensation charges compared to 2018. The Corporation expects that general and administrative expenditures (exclusive of stock compensation costs) will increase as new product development leads to expanded operations.

Finance costs

Net finance income were $55,843 for the quarter and $98,513 for the six months ended June 30, 2019, compared with net finance income of $623 for the quarter and net finance expense of $5,160 for the six months ended June 30, 2018. The finance income increase of $55,220 for the quarter ended June 30, 2019 is mainly attributable to an increase of $60,922 in interest income offset with $5,120 in operating lease and financial expense increase. The increase of $103,673 for the six months ended June 30, 2019 is mainly attributable to an increase of $112,579 in interest income offset with $8,907 in operating lease and financial interest expense increase.

The Corporation incurs expenses in the local currency of the countries in which it operates, which include the United States, Canada and the Bahamas. Foreign exchange fluctuations had no meaningful impact on the Corporation’s results in 2019 or 2018.

Inflation

The Corporation does not believe that inflation has had a significant impact on its results of operations during period ended June 30, 2019.

Contractual Obligations Commitment

Nymox has no contractual obligations of significance other than its accounts payable, accrued liabilities and the following:

Contractual Obligations	Total		Less than 1 year		1-3 years		4-5 years
Operating lease for office space and equipment	$	291,486	$	235,725	$	55,761	$	0
Rent for equipment	$	3,734	$	1,660	$	2,074	$	0
Total contractual obligations other than accounts payable and accrued liabilities	$	295,220	$	237,385	$	57,835	$	0

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Off-Balance Sheet Arrangements

The Corporation has no binding commitments for the purchase of property, equipment or intellectual property. Effective for annual reporting periods beginning on January 1, 2019, IFRS 16 introduces a new approach to lessee accounting that requires a lessee to recognize assets and liabilities for the rights and obligations created by lease. IFRS 16 requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months and for which the underlying asset value is not of low value. The Corporation adopted IFRS 16 on January 1, 2019. The corporation has no commitments that are not reflected in the statement of financial position except for insurance premium installments.

Transactions with Related Parties

The Corporation had no transactions with related parties in 2019 and 2018 other than those disclosed for key management personnel in note 6 of the unaudited condensed interim Consolidated Financial Statements.

Financial Position

Liquidity and Capital Resources

As of June 30, 2019, cash and receivables including tax credits receivable totaled $9,120,000 compared with $7,960,000 at December 31, 2018. The increase is mainly due to proceeds from the issuance of share capital.

We used cash in our operating activities in the amounts of $3,725,178 and $3,743,071 for the six months ended June 30, 2019 and 2018, respectively.

Investing activities have been insignificant and substantially all cash flows have been provided by financing activities, specifically proceeds from the issuance of common stock.

On January 15, 2019, the Corporation completed one private placement to an accredited investor for an amount of $5,000,000 and 2,500,000 shares were issued at $2.0 per share and 2,500,000 warrants were issued connect with it. The warrant has excise price of $8.0 per share with a term of five years.

As of June 30, 2019, the Corporation made principle repayment of operating lease at a total of $125,167.

Other than the financing discussed above, the Corporation does not have arranged sources of financing.

We have incurred substantial operating losses since our inception due in large part to expenditures for our research and development activities and expense charges related to the issuance of stock and stock options to our key employees. As at June 30, 2019, we had an accumulated deficit of $163,138,628 including $11,667 accumulated effect from new lease accounting adoption as of January 1, 2019, and we have negative cash flows from operations. The Corporation’s working capital is $7,492,115 at June 30, 2019. Our current level of annual expenditures exceeds the anticipated revenues from sales of goods, however, we have totaling over $9 Million at our bank as of June 30, 2019.

Management has implemented steps to reduce expenditures, including deferral of management salaries, and other operational changes. There is no assurance these actions will be successful; however management believes the use of the going concern assumption is appropriate.

The unaudited interim consolidated financial statements for the three months ended June 30, 2019, do not include any adjustments or disclosures that may be necessary should the Corporation not be able to continue as a going concern. Should the going concern assumption not be appropriate, then adjustments may be necessary to the carrying value and classification of assets and liabilities and reported results of operations and such adjustments could be material.

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Capital disclosures

The Corporation's objective in managing capital is to ensure a sufficient liquidity position to finance its research and development activities, general and administrative expenses, working capital and overall capital expenditures, including those associated with patents. The Corporation makes every attempt to manage its liquidity to minimize shareholder dilution when possible.

The capital management objectives remain the same as for the previous fiscal year. When possible, the Corporation tries to optimize its liquidity needs by non-dilutive sources, including sales, collaboration agreements, and interest income. The Corporation's general policy on dividends is to retain cash to keep funds available to finance its research and development and operating expenses.

The Corporation is not subject to any capital requirements imposed by external parties other than the Nasdaq Capital Market requirements related to the Listing Rules.

Disclosure Controls and Procedures

Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed is accumulated and communicated to senior management on a timely basis so that appropriate decisions can be made regarding public disclosure. The Corporation’s Chief Executive Officer and its Chief Financial Officer are responsible for establishing and maintaining disclosure controls and procedures. They are assisted in this responsibility by the Corporation’s audit committee. Based on an evaluation of the Corporation’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 and National Instrument 52-109), the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures are effective as of June 30, 2019.

Thayer O’Neal Company, LLC, our auditors, expressed their opinion that the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2018, was effective and their opinion was not modified in any way.

Changes in Internal Controls Over Financial Reporting

We have made significant improvements in Internal Controls over Financial Reporting since year 2017.

Management believes that proper segregation of duties is critical to a properly designed and operating internal control environment for financial reporting. The Corporation developed and implemented a remediation plan, with oversight from the Audit Committee, to remediate the following material weaknesses in internal controls over financial reporting, first identified in 2015:

The Corporation did not employ a sufficient complement of finance and accounting personnel to ensure that there was proper segregation of duties related to certain processes, primarily impacting the expenditures/disbursements processes and information technology general controls (“ITGC”) and sufficient compensating controls did not exist in these areas. To improve the weakness in these areas, the Corporation has implemented following remediation plan.

· The Corporation hired an external accounting expert, functioning in a controllers role, at the beginning of 2017 to assist in the accounting for non-routine complex accounting matters and to enhance oversight of the financial reporting process. However, the Chief Financial Officer continued to have final say in what would be included or excluded from our financial statements and related disclosures thereto.

· The accounting system was transferred to a new general ledger software system on a secure cloud platform.

· Additionally, we contracted with a Managed Service Provider to maintain our IT infrastructure.

Internal control over financial reporting has inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate this risk.

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NYMOX PHARMACEUTICAL CORPORATION

Condensed Interim Consolidated Financial Statements

(Unaudited)

Financial Statements

Consolidated Statements of Operations (Unaudited)	8
Consolidated Statements of Financial Position as of June 30, 2019 and December 31, 2018 (Unaudited)	9
Consolidated Statements of Cash Flows (Unaudited)	10
Consolidated Statements of Changes in Equity (Unaudited)	11

Notes to Interim Consolidated Financial Statements

1.	Basis of preparation	12
2.	Liquidity, going concern and management’s response	12
3.	Share capital	13
4.	Earnings per share	15
5.	Operating lease and other commitment	15
6.	Related party transactions	16
7.	Subsequent event	16

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NYMOX PHARMACEUTICAL CORPORATION

Consolidated Statements of Operations (Unaudited)

Three and Six-month periods ended June 30, 2019 and 2018

(In Thousands of US dollars Other Than Per Share Amounts and Thousands of Shares)

			Three months ended June 30,						Six months ended June 30,
	Note		2019			2018			2019			2018
Revenues
Sales of goods			$	20		$	88		$	50		$	241
Total revenues				20			88			50			241
Operating expenses
Research and development				2,336			1,549			4,066			3,506
General and administrative				2,876			935			4,061			1,729
Marketing				–			–			–			–
Cost of sales				7			24			36			84
Total expenses				5,219			2,508			8,163			5,319
Loss from operations				(5,199	)		(2,420	)		(8,113	)		(5,078	)
Other Expense
Operating lease and financial obligations				(6	)		-			(12	)		-
Interest income (cost))				61			1			111			(5	)
Loss before income tax			$	(5,144	)	$	(2,419	)	$	(8,014	)	$	(5,083	)
Income tax provision (recovery)				-			-			-			-
Net loss				(5,144	)		(2,419	)		(8,014	)		(5,083	)
Net loss per share Basic & Diluted		4	$	(0.08	)	$	(0.04	)	$	(0.12	)	$	(0.09	)
Weighted average number of common shares outstanding Basic & Diluted		4		68,436			59,273			67,745			58,170

See accompanying notes to the unaudited consolidated financial statements.

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NYMOX PHARMACEUTICAL CORPORATION

Consolidated Statements of Financial Position (Unaudited)

June 30, 2019 and December 31, 2018

(In Thousands of US dollars and Thousands of Shares)

			June 30,			December 31,
	Note		2019			2018
Assets
Current assets
Cash			$	9,096		$	7,946
Accounts receivable				10			2
Other receivables				14			12
Inventory				35			41
Security deposit				11			23
Prepaid expenses				38			2
Total current assets				9,204			8,026
Non-current assets
Property and equipment				29			33
Operating lease right-of-use asset, net		5		265			-
Security deposit				17			17
Total assets			$	9,515		$	8,076
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable and accrued liabilities			$	1,667		$	1,074
Operating lease liability due within one year		5		45			-
Total current liability				1,712			1,074
Long term operating lease liability		5		238			-
Total liabilities				1,950			1,074
Stockholders’ Equity
Share capital – unlimited authorized shares at no par value 69,718 and 64,676 shares outstanding at June 30, 2019 and December 31, 2018, respectively		3		136,554			126,684
Share capital subscription receivable				(589	)		(868	)
Additional paid-in capital		3		34,739			36,299
Accumulated deficit				(163,139	)		(155,113	)
Total stockholders’ equity				7,565			7,002
Total liabilities and stockholders’ equity			$	9,515		$	8,076

See accompanying notes to the unaudited consolidated financial statements.

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NYMOX PHARMACEUTICAL CORPORATION

Consolidated Statements of Cash Flows (Unaudited)

Six-month periods ended June 30, 2019 and 2018

(In Thousands of US Dollars )

		2019			2018
Cash flows from operating activities
Net loss		$	(8,014	)	$	(5,083	)
Adjustments for:
Stock-based compensation	3(c)		1,980			1,921
Depreciation equipment			4
Issued stock for service fee			1,330			32
Amortization and others			411			-
Changes in non-cash operating balances:
Accounts receivable and other receivables			(10	)		60
Prepaid expenses			(37	)		(34	)
Inventories			6			(24	)
Accounts payable and accrued liabilities			592			(615	)
Security deposit			13
Net cash flows used in operating activities			(3,725	)		(3,743	)
Cash flows from (used in) financing activities
Proceeds from issuance of share capital	3(a)		5,000			7,932
Repayment of operating lease and financing obligation			(125	)
Net cash flows provided by financing activities			4,875			7,932
Net (decrease) increase in cash			1,150			4,189
Cash, beginning of the period			7,946			851
Cash, end of the period		$	9,096		$	5,040
Supplemental Disclosure
Income taxes paid		$	-		$	-
Interest paid		$	-		$	-
Non-cash investing and financing activities
Increase in right-of-use asset and related liability		$	329		$	-

See accompanying notes to the unaudited consolidated financial statement.

10

NYMOX PHARMACEUTICAL CORPORATION

Consolidated Statements of Changes in Equity (Unaudited)

Six-month period ended June 30, 2019

(In Thousands of US dollars and Thousands of Shares)

	Common Shares		Dollars		Share capital subscription			Additional paid-in capital			Accumulated Deficit			Total
Balance, December 31, 2018		64,676	$	126,684	$	(868	)	$	36,299		$	(155,113	)	$	7,002
Lease adoption prior year cumulative effect												(12	)		(12	)
Share issuance for cash and share subscription		2,542		4,800		279									5,079
Warrant issued		–		–		–			200			–			200
Stock-based compensation and service fee		2,500		5,070					(1,760	)		–			3,310
Net loss		–		–		–			–			(8,014	)		(8,014	)
Balance, June 30, 2019		69,718		136,554	$	(589	)	$	34,739		$	(163,139	)	$	7,565

See accompanying notes to the condensed unaudited interim consolidated financial statements.

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NYMOX PHARMACEUTICAL CORPORATION

Notes to Unaudited Consolidated Financial Statements

Three and Six-month periods ended June 30, 2019 and 2018

(US dollars)

1. Basis of preparation:

(a) Statement of compliance:

The accompanying Condensed Consolidated Balance Sheet as of December 31, 2018, which was derived from audited financial statements, and the unaudited interim consolidated financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and its interpretations as issued by the International Accounting Standards Board (“IASB”) and in accordance with IAS 34, Interim Financial Reporting. The condensed unaudited interim consolidated financial statements do not include all of the information required for full annual financial statements and accordingly should be read in conjunction with the previously issued annual financial statements of the Corporation for the fiscal year ended December 31, 2018 and notes thereto contained in the Corporation’s Annual Report on Form 20F.  

The consolidated condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on August 14, 2019.

(b) Basis of measurement:

The condensed unaudited interim consolidated financial statements have been prepared on a going concern and on the historical cost basis. The functional currency of the Corporation is the US dollar.  

Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Information about critical judgments in applying accounting policies and assumption and estimation uncertainties that have the most significant effect on the amounts recognized in the consolidated financial statements is noted below: 

Significant estimates include, but are not limited to, the estimation of useful lives of equipment for purposes of depreciation, useful life of lease RUA for purpose of amortization and the valuation of common shares and stock option issued for services.

2. Liquidity, Going Concern and Management’s Response:

Management believes that current cash balances as of June 30, 2019 is sufficient to finance the Company’s operations for at least the next 12 months. However, if necessary, the Company intends to seek additional equity or other financing, should the Company’s liquidity need change.

Considering recent developments and the need for additional financing, there exists a material uncertainty that casts substantial doubt about the Corporation’s ability to continue as a going concern. These financial statements do not reflect adjustments that would be necessary. If the going concern assumption is not appropriate, then adjustments may be necessary to the carrying value and classification of assets and liabilities and reported results of operations and such an adjustment could be material.

12

NYMOX PHARMACEUTICAL CORPORATION

Notes to Unaudited Consolidated Financial Statements

Three and Six-month periods ended June 30, 2019 and 2018

(US dollars)

3. Share Capital:

The holders of common shares are entitled to receive dividends as declared, which is at the discretion of the Corporation, and are entitled to one vote per share at the annual general meeting of the Corporation. The Corporation has never paid any dividends.

(a) Private placements:

At the six-month period ended June 30, 2019, the Corporation completed one private placement to an accredited investor for a total of $5,000,000. A total of 2,500,000 common shares were issued at $2.00 per share and 2,500,000 warrants were issued connecting with the share issuance.

(b) Stock options:

The Corporation has established a stock option plan (the “Plan”) for its key employees, its officers and directors, and certain consultants. The Plan is administered by the Board of Directors of the Corporation. The Board may from time to time designate individuals to whom options to purchase common shares of the Corporation may be granted, the number of shares to be optioned to each, and the option price per share. The option price per share cannot involve a discount to the market price at the time the option is granted. The maximum number of shares which may be optioned under the stock option plan is 7,500,000. The maximum number of shares which may be optioned to any one individual is 15% of the total issued and outstanding common shares. Options under the Plan expire ten years after the grant date and vest either immediately or over periods up to six years, and are equity-settled. As at June 30, 2019, 1,410,000 options could still be granted by the Corporation.

The following table provides the activity of stock option awards during the six-month period ended June 30, 2019 and for options outstanding and exercisable at the end of the six-month period ended June 30, 2019, the range of exercise price and the weighted average years to expiration.

				outstanding		Weighted
				Weighted		average
				average		remaining
				exercise		contractual
	Number			Price		life (in years)
Outstanding, December 31, 2018		5,740,000		$	1.76		6.37
Expired / Cancelled		(10,000	)		3.43		-
Granted		360,000			2.08		9.76
Outstanding, June 30, 2019		6,090,000		$	1.78		6.11
Options exercisable		6,090,000		$	1.78		6.11

13

NYMOX PHARMACEUTICAL CORPORATION

Notes to Unaudited Consolidated Financial Statements

Three and Six-month periods ended June 30, 2019 and 2018

(US dollars)

(c) Stock-based compensation:   Stock -based compensation includes stock and stock option granted to employees

	Three months				Six months
	ended June 30,				ended June 30,
Employee expenses	2019		2018		2019		2018
Stock options and compensation granted in:
2015		609,389		913,964		1,286,823		1,920,769
2018		–		–		13,038		–
2019		680,290				680,290
Total stock-based compensation expense recognized	$	1,289,679	$	913,964	$	1,980,151	$	1920,769

The stock-based compensation expense is disaggregated in the statements of operations and comprehensive loss as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Stock-based compensation pertaining to general and administrative	$	984,984	$	456,982	$	1,323,701	$	960,384
Stock-based compensation pertaining to research and development		304,695		456,982		656,450		960,385
Total	$	1,289,679	$	913,964	$	1,980,151	$	1,920,769

360,000 stock options were granted to five directors during the six-month period ended June 30, 2019 and no options were granted in the comparative period in 2018.

During the three -month period ended on June 30, 2019, the corporation issued one million share with a total value of $1,330,000 to a related party for their significant contributions and development of the company from year 2014 to 2019.

(d) Warrants :

In the first quarter of 2019, the Corporation issued 2,500,000 warrants in connection with one private placement referred to in note 3 (a). Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $8.00 with a five year term. The warrant was valued at $200,000 and recorded as part of additional paid in capital.

14

NYMOX PHARMACEUTICAL CORPORATION

Notes to Unaudited Consolidated Financial Statements

Three and Six-month periods ended June 30, 2019 and 2018

(US dollars)

4. Earnings per Share:

Weighted average number of common shares outstanding:

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Issued common shares at beginning of period		67,926,256		57,842,922		64,676,256		56,378,306
Effect of shares issued		509,483		1,429,855		3,068,304		1,792,078
Weighted average number of common shares outstanding – basic		68,435,739		59,272,777		67,744,560		58,170,384
Weighted average number of shares outstanding – b diluted		68,435,739		59,272,777		67,744,560		58,170,384

There is no difference in diluted as compared to basic earnings per share as the impact would be antidilutive as a result of the net loss.

5. Operating lease and other commitment

Effective for annual reporting periods beginning on or after January 1, 2019, IFRS 16 introduced a new approach to lessee accounting that requires a lessee to recognize assets and liabilities for the rights and obligations created by leases. IFRS 16 requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months. The IASB concluded that such an approach will result in a more faithful representation of a lessee’s assets and liabilities and, together with enhanced disclosures, greater transparency of a lessee’s financial leverage and capital employed.

We adopted this standard on January 1, 2019, with an immaterial cumulative adjustment of $11,667 to accumulated deficit rather than retrospectively adjusting prior periods. This adoption approach resulted in a balance sheet presentation that is not comparable to the prior period. We used an incremental borrowing rate as a discount rate for our operating leases. The discount rate ranges from 6.89% to 7.10%. The adoption of this standard resulted in the recognition of operating lease assets of approximately $393,000 and liabilities of approximately $405,000 as of January 1,2019. The average remaining years for our lease are 1.31 years as of June 30, 2019.

The following table provides the changes in the Corporation’s operating lease right-of-use assets for the six months ended June 30, 2019:

(amounts in dollars)	Operating lease right-of-use asset
Balances as of January 1, 2019	$	393,110
Accumulated amortization		(128,161	)
Balances as of June 30, 2019	$	264,949

The following table provides the changes in the Corporation’s operating lease liability for the six months ended June 30, 2019:

(amounts in dollars)	Lease liability due within one year			Lease liability long-term			Total
Balances as of January 1, 2019	$	86,061		$	318,716		$	404,777
Repayments of lease liability		(41,620	)		(83,547	)		(125,167	)
Other					2,902			2,902
Balances as of June 30, 2019	$	44,441		$	238,071		$	282,512

15

NYMOX PHARMACEUTICAL CORPORATION

Notes to Unaudited Consolidated Financial Statements

Three and Six-month periods ended June 30, 2019 and 2018

(US dollars)

 

The total future commitment payment amount for above lease is $295,220 comparing an outstanding lease liability of $282,512 as of June 30, 2019. The difference is due to borrowing rate discount.

6. Related Party Transactions:

The transactions we have with related parties are compensation arrangements for current compensation, share based compensation and compensation under options compensation to our officers and directors.

Executive officers and directors participate in the Corporation’s stock option plan. Certain Executive officers are covered under the Corporation’s health plan.

Key management personnel compensation is comprised of:

	Three months				Six months
	ended June 30,				ended June 30,
	2019		2018		2019		2018
Salaries		-		-		-		-
Short-term employee benefits		552		476		1,108		962
Stock-based compensation		1,289,679		913,964		1,967,113		1,920,769
	$	1,290,231	$	914,440	$	1,968,221		1,921,731

Total honorariums to the independent directors of the Corporation for participating in Board and Committee meetings were nil for the period ended June 30, 2019 and 2018, respectively.

Our Chief Financial Officer receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments in the form of contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $240,000 for the period ended June 30, 2019 and $202,500 for the period ended June 30, 2018, respectively. During the three month periods ended June 30, 2019, the Corporation issued one million shares to the same related party corporation at $1.33 per share for a total value of $1,330,000 for their significant contributions and development of the company from year 2014 to 2019. 

Our Corporate Legal Counsel receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments in the form of contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $169,162 for the period ended June 30, 2019 and $102,542 for the period ended June 30, 2018, respectively.

7. Subsequent events:

The corporation has determined there are no subsequent events:

16

EX-99.2

EXHIBIT 99.2

CERTIFICATION

I, Paul Averback, President and CEO of Nymox Pharmaceutical Corporation, certify that:

1.	I have reviewed this quarterly report for the period ended June 30,2019 of Nymox Pharmaceutical Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.	The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)), and internal control over financial reporting (as defined in the Exchange Act Rules 13a–15(f) and 15d–15(f)) for the company based on the COSO 1992 framework and we have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with international financial reporting standards;
c)	evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.      The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: August 14, 2019

By:	/s/ Paul Averback, MD
	Paul Averback, MD
	President and Chief Executive Officer
	Nymox Pharmaceutical Corporation

CERTIFICATION PURSUANT TO 

18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Averback, President and CEO of Nymox Pharmaceutical Corporation, do hereby certify that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the information contained in the Quarterly Report for the period ended June 30, 2019 of Nymox Pharmaceutical Corporation and filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 and the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Nymox Pharmaceutical Corporation

Date: August 14, 2019

By:	/s/ Paul Averback, MD
	Paul Averback, MD
	President and Chief Executive Officer
	Nymox Pharmaceutical Corporation

EX-99.3

EXHIBIT 99.3

CERTIFICATION

I, Erik Danielsen, CFO of Nymox Pharmaceutical Corporation, certify that:

1.	I have reviewed this quarterly report for the period ended June 30, 2019 of Nymox Pharmaceutical Corporation;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
4.	The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)), and internal control over financial reporting (as defined in the Exchange Act Rules 13a–15(f) and 15d–15(f)) for the company based on the COSO 1992 framework and we have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with international financial reporting standards;
c)	evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5.      The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent function):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: August 14, 2019

By:	/s/ Erik Danielsen
	Erik Danielsen
	Chief Financial Officer
	Nymox Pharmaceutical Corporation

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Erik Danielsen, CFO of Nymox Pharmaceutical Corporation, do hereby certify that, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the information contained in the Annual Report for the period ended June 30, 2019 of Nymox Pharmaceutical Corporation and filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 and the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Nymox Pharmaceutical Corporation

Date: August 14, 2019

By:	/s/ Erik Danielsen
	Erik Danielsen
	Chief Financial Officer
	Nymox Pharmaceutical Corporation

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2019
Document And Entity Information
Entity Registrant Name	NYMOX PHARMACEUTICAL CORPORATION
Entity Central Index Key	0001018735
Document Type	6-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Sales of goods	$ 20	$ 88	$ 50	$ 241
Total revenues	20	88	50	241
Operating expenses
Research and development	2,336	1,549	4,066	3,506
General and administrative	2,876	935	4,061	1,729
Marketing
Cost of sales	7	24	36	84
Total expenses	5,219	2,508	8,163	5,319
Loss from operations	(5,199)	(2,420)	(8,113)	(5,078)
Other expense
Operation lease and financial obligations	(6)		(12)
Interest income(cost)	61	1	111	(5)
Loss before income tax	(5,144)	(2,419)	(8,014)	(5,083)
Income tax provision(recovery)
Net loss	$ (5,144)	$ (2,419)	$ (8,014)	$ (5,083)
Net loss per share Basic & Diluted	$ (0.08)	$ (0.04)	$ (0.12)	$ (0.09)
Weighted average number of common shares outstanding Basic & Diluted	68,436	59,273	67,745	58,170

XML

Consolidated Statements of Financial Position - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash	$ 9,096	$ 7,946
Accounts receivable	10	2
Other receivables	14	12
Inventory	35	41
Security deposit	11	23
Prepaid expenses	38	2
Total current assets	9,204	8,026
Non-current assets
Property and equipment	29	33
Operating lease right-of-use asset, net	265
Security deposit	17	17
Total assets	9,515	8,076
Current liabilities
Accounts payable and accrued liabilities	1,667	1,074
Operating lease liability due within one year	45
Total current liability	1,712	1,074
Long term operating lease liability	238
Total liabilities	1,950	1,074
Stockholders’ Equity
Share capital - –unlimited authorized shares at no par value 69,718 and 64,676 shares outstanding at June 30, 2019 and December 31, 2018, respectively	136,554	126,684
Share capital subscription receivable	(589)	(868)
Additional paid-in capital	34,739	36,299
Accumulated deficit	(163,139)	(155,113)
Total Stockholders' equity	7,565	7,002
Total liabilities and stockholders' equity	$ 9,515	$ 8,076

XML

Consolidated Statements of Financial Position (Parenthetical) - shares shares in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of financial position [abstract]
Share capital, shares outstanding	69,718	64,676

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows used in operating activities
Net loss	$ (8,014)	$ (5,083)
Adjustments for:
Stock-based compensation	1,980	1,921
Depreciation equipment	4
Issued stock for service fee	1,330	32
Amortization and others	411
Accounts receivable and other receivables	(10)	60
Prepaid expense	(37)	(34)
Inventories	6	(24)
Accounts payable and accrued liabilities	592	(615)
Security deposit	13
Net cash flows used in operating activities	(3,725)	(3,743)
Cash flows from (used in) financing activities
Proceeds from the issuance of share capital	5,000	7,932
Repayment of operating lease and financing obligation	(125)
Net cash flows provided by financing activities	4,875	7,932
Cash flows used in investing activities
Net (decrease) increase in cash	1,150	4,189
Cash, beginning of the period	7,946	851
Cash, end of the period	9,096	5,040
SUPPLEMENTAL DISCLOSURE
Income taxes paid
Interest paid
Increase in right-of-use asset and related liability	$ 329

XML

Consolidated Statements of Changes in Equity (Unaudited) - 6 months ended Jun. 30, 2019 - USD ($) shares in Thousands, $ in Thousands	Common Stock	Subscriptions	Additional Paid-In Capital	Accumulated Deficit	Total
Begning balance, shares at Dec. 31, 2018	64,676
Begning balance, amount at Dec. 31, 2018	$ 126,684	$ (868)	$ 36,299	$ (155,113)	$ 7,002
Statement Line Items [Line Items]
Lease adoption prior year cumulative effect				(12)	(12)
Shares issuance for cash and share subscriptions, shares	2,542
Shares issuance for cash and share subscriptions, amount	$ 4,800	279			5,079
Warrant issued			200		200
Stock-based compensation and service fee, shares	2,500
Stock-based compensation and service fee, amount	$ 5,070		(1,760)		3,310
Net loss				(8,014)	(8,014)
Ending balance, shares at Jun. 30, 2019	69,718
Ending balance, amount at Jun. 30, 2019	$ 136,554	$ (589)	$ 34,739	$ (163,139)	$ 7,565

XML

Basis of preparation

6 Months Ended

Jun. 30, 2019

Basis Of Preparation

NOTE 1 - Basis of preparation

(a) Statement of compliance:

The accompanying Condensed Consolidated Balance Sheet as of December 31, 2018, which was derived from audited financial statements, and the unaudited interim consolidated financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and its interpretations as issued by the International Accounting Standards Board (“IASB”) and in accordance with IAS 34, Interim Financial Reporting. The condensed unaudited interim consolidated financial statements do not include all of the information required for full annual financial statements and accordingly should be read in conjunction with the previously issued annual financial statements of the Corporation for the fiscal year ended December 31, 2018 and notes thereto contained in the Corporation’s Annual Report on Form 20F.  

The consolidated condensed interim consolidated financial statements were authorized for issuance by the Board of Directors on August 14, 2019.

(b) Basis of measurement:

The condensed unaudited interim consolidated financial statements have been prepared on a going concern and on the historical cost basis. The functional currency of the Corporation is the US dollar.  

Use of estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Information about critical judgments in applying accounting policies and assumption and estimation uncertainties that have the most significant effect on the amounts recognized in the consolidated financial statements is noted below: 

Significant estimates include, but are not limited to, the estimation of useful lives of equipment for purposes of depreciation, useful life of lease RUA for purpose of amortization and the valuation of common shares and stock option issued for services.

XML

Liquidity, Going Concern and Management’s Response

6 Months Ended

Jun. 30, 2019

Liquidity Going Concern And Managements Response

NOTE 2 - Liquidity, Going Concern and Management’s Response

Management believes that current cash balances as of June 30, 2019 is sufficient to finance the Company’s operations for at least the next 12 months. However, if necessary, the Company intends to seek additional equity or other financing, should the Company’s liquidity need change.

Considering recent developments and the need for additional financing, there exists a material uncertainty that casts substantial doubt about the Corporation’s ability to continue as a going concern. These financial statements do not reflect adjustments that would be necessary. If the going concern assumption is not appropriate, then adjustments may be necessary to the carrying value and classification of assets and liabilities and reported results of operations and such an adjustment could be material.

XML

Share capital

6 Months Ended

Jun. 30, 2019

Share Capital

NOTE 3 - Share capital

The holders of common shares are entitled to receive dividends as declared, which is at the discretion of the Corporation, and are entitled to one vote per share at the annual general meeting of the Corporation. The Corporation has never paid any dividends.

(a) Private placements:

At the six-month period ended June 30, 2019, the Corporation completed one private placement to an accredited investor for a total of $5,000,000. A total of 2,500,000 common shares were issued at $2.00 per share and 2,500,000 warrants were issued connecting with the share issuance.

(b) Stock options:

The Corporation has established a stock option plan (the “Plan”) for its key employees, its officers and directors, and certain consultants. The Plan is administered by the Board of Directors of the Corporation. The Board may from time to time designate individuals to whom options to purchase common shares of the Corporation may be granted, the number of shares to be optioned to each, and the option price per share. The option price per share cannot involve a discount to the market price at the time the option is granted. The maximum number of shares which may be optioned under the stock option plan is 7,500,000. The maximum number of shares which may be optioned to any one individual is 15% of the total issued and outstanding common shares. Options under the Plan expire ten years after the grant date and vest either immediately or over periods up to six years, and are equity-settled. As at June 30, 2019, 1,410,000 options could still be granted by the Corporation.

The following table provides the activity of stock option awards during the six-month period ended June 30, 2019 and for options outstanding and exercisable at the end of the six-month period ended June 30, 2019, the range of exercise price and the weighted average years to expiration.

				outstanding		Weighted
				Weighted		average
				average		remaining
				exercise		contractual
	Number			Price		life (in years)
Outstanding, December 31, 2018		5,740,000		$	1.76		6.37
Expired / Cancelled		(10,000	)		3.43		-
Granted		360,000			2.08		9.76
Outstanding, June 30, 2019		6,090,000		$	1.78		6.11
Options exercisable		6,090,000		$	1.78		6.11

(c) Stock-based compensation: Stock -based compensation includes stock and stock option granted to employees

	Three months				Six months
	ended June 30,				ended June 30,
Employee expenses	2019		2018		2019		2018
Stock options and compensation granted in:
2015		609,389		913,964		1,286,823		1,920,769
2018		–		–		13,038		–
2019		680,290				680,290
Total stock-based compensation expense recognized	$	1,289,679	$	913,964	$	1,980,151	$	1920,769

The stock-based compensation expense is disaggregated in the statements of operations and comprehensive loss as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Stock-based compensation pertaining to general and administrative	$	984,984	$	456,982	$	1,323,701	$	960,384
Stock-based compensation pertaining to research and development		304,695		456,982		656,450		960,385
Total	$	1,289,679	$	913,964	$	1,980,151	$	1,920,769

360,000 stock options were granted to five directors during the six-month period ended June 30, 2019 and no options were granted in the comparative period in 2018.

During the three -month period ended on June 30, 2019, the corporation issued one million shares with a total value of $1,330,000 to a related party for their significant contributions and development of the company from year 2014 to 2019.

(d) Warrants :

In the first quarter of 2019, the Corporation issued 2,500,000 warrants in connection with one private placement referred to in note 3 (a). Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $8.00 with a five year term. The warrant was valued at $200,000 and recorded as part of additional paid in capital.

XML

Earnings per share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

NOTE 4 - Earnings per share

Weighted average number of common shares outstanding:

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Issued common shares at beginning of period		67,926,256		57,842,922		64,676,256		56,378,306
Effect of shares issued		509,483		1,429,855		3,068,304		1,792,078
Weighted average number of common shares outstanding – basic		68,435,739		59,272,777		67,744,560		58,170,384
Weighted average number of shares outstanding – b diluted		68,435,739		59,272,777		67,744,560		58,170,384

There is no difference in diluted as compared to basic earnings per share as the impact would be antidilutive as a result of the net loss.

XML

Operating lease and other commitment

6 Months Ended

Jun. 30, 2019

Operating Lease And Other Commitment

NOTE 5 - Operating lease and other commitment

Effective for annual reporting periods beginning on or after January 1, 2019, IFRS 16 introduced a new approach to lessee accounting that requires a lessee to recognize assets and liabilities for the rights and obligations created by leases. IFRS 16 requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months. The IASB concluded that such an approach will result in a more faithful representation of a lessee’s assets and liabilities and, together with enhanced disclosures, greater transparency of a lessee’s financial leverage and capital employed.

We adopted this standard on January 1, 2019, with an immaterial cumulative adjustment of $11,667 to accumulated deficit rather than retrospectively adjusting prior periods. This adoption approach resulted in a balance sheet presentation that is not comparable to the prior period. We used an incremental borrowing rate as a discount rate for our operating leases. The discount rate ranges from 6.89% to 7.10%. The adoption of this standard resulted in the recognition of operating lease assets of approximately $393,000 and liabilities of approximately $405,000 as of January 1,2019. The average remaining years for our lease are 1.31 years as of June 30, 2019.

The following table provides the changes in the Corporation’s operating lease right-of-use assets for the six months ended June 30, 2019:

(amounts in dollars)	Operating lease right-of-use asset
Balances as of January 1, 2019	$	393,110
Accumulated amortization		(128,161	)
Balances as of June 30, 2019	$	264,949

The following table provides the changes in the Corporation’s operating lease liability for the six months ended June 30, 2019:

(amounts in dollars)	Lease liability due within one year			Lease liability long-term			Total
Balances as of January 1, 2019	$	86,061		$	318,716		$	404,777
Repayments of lease liability		(41,620	)		(83,547	)		(125,167	)
Other					2,902			2,902
Balances as of June 30, 2019	$	44,441		$	238,071		$	282,512

The total future commitment payment amount for above lease is $295,220 comparing an outstanding lease liability of $282,512 as of June 30, 2019. The difference is due to borrowing rate discount.

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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related party transactions [abstract]

NOTE 6 - Related Party Transactions

The transactions we have with related parties are compensation arrangements for current compensation, share based compensation and compensation under options compensation to our officers and directors.

Executive officers and directors participate in the Corporation’s stock option plan. Certain Executive officers are covered under the Corporation’s health plan.

Key management personnel compensation is comprised of:

	Three months				Six months
	ended June 30,				ended June 30,
	2019		2018		2019		2018
Salaries		-		-		-		-
Short-term employee benefits		552		476		1,108		962
Stock-based compensation		1,289,679		913,964		1,967,113		1,920,769
	$	1,290,231	$	914,440	$	1,968,221		1,921,731

Total honorariums to the independent directors of the Corporation for participating in Board and Committee meetings were nil for the period ended June 30, 2019 and 2018, respectively.

Our Chief Financial Officer receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments in the form of contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $240,000 for the period ended June 30, 2019 and $202,500 for the period ended June 30, 2018, respectively. During the three month periods ended June 30,2019, the Corporation issued one million shares to the same related party corporation at $1.33 per share for a total value of $1,330,000 for their significant contributions and development of the company from year 2014 to 2019.

Our Corporate Legal Counsel receives no compensation as an individual and receives no deferred or incentive compensation. We do make payments in the form of contract for services rendered to a corporation controlled by him. Amounts paid under this arrangement were $169,162 for the period ended June 30, 2019 and $102,542 for the period ended June 30, 2018, respectively.

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Subsequent events

6 Months Ended

Jun. 30, 2019

Subsequent Events

NOTE 7 - Subsequent events

The corporation has determined there are no subsequent events:

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Share capital (Tables)

6 Months Ended

Jun. 30, 2019

Share Capital Tables Abstract

Weighted average exercise price, and the weighted average remaining contractual life

				outstanding		Weighted
				Weighted		average
				average		remaining
				exercise		contractual
	Number			Price		life (in years)
Outstanding, December 31, 2018		5,740,000		$	1.76		6.37
Expired / Cancelled		(10,000	)		3.43		-
Granted		360,000			2.08		9.76
Outstanding, June 30, 2019		6,090,000		$	1.78		6.11
Options exercisable		6,090,000		$	1.78		6.11

Stock and stock option-based compensation expense

	Three months				Six months
	ended June 30,				ended June 30,
Employee expenses	2019		2018		2019		2018
Stock options and compensation granted in:
2015		609,389		913,964		1,286,823		1,920,769
2018		–		–		13,038		–
2019		680,290				680,290
Total stock-based compensation expense recognized	$	1,289,679	$	913,964	$	1,980,151	$	1920,769

Stock-based compensation expense

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Stock-based compensation pertaining to general and administrative	$	984,984	$	456,982	$	1,323,701	$	960,384
Stock-based compensation pertaining to research and development		304,695		456,982		656,450		960,385
Total	$	1,289,679	$	913,964	$	1,980,151	$	1,920,769

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share

Weighted average number of common shares outstanding

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Issued common shares at beginning of period		67,926,256		57,842,922		64,676,256		56,378,306
Effect of shares issued		509,483		1,429,855		3,068,304		1,792,078
Weighted average number of common shares outstanding – basic		68,435,739		59,272,777		67,744,560		58,170,384
Weighted average number of shares outstanding – b diluted		68,435,739		59,272,777		67,744,560		58,170,384

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Operating lease and other commitment (Tables)

6 Months Ended

Jun. 30, 2019

Operating Lease And Other Commitment Tables Abstract

Operating lease right-of-use assets

(amounts in dollars)	Operating lease right-of-use asset
Balances as of January 1, 2019	$	393,110
Accumulated amortization		(128,161	)
Balances as of June 30, 2019	$	264,949

Operating lease liability

(amounts in dollars)	Lease liability due within one year			Lease liability long-term			Total
Balances as of January 1, 2019	$	86,061		$	318,716		$	404,777
Repayments of lease liability		(41,620	)		(83,547	)		(125,167	)
Other					2,902			2,902
Balances as of June 30, 2019	$	44,441		$	238,071		$	282,512

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2019

Related Party Transactions

Share based compensation and compensation under options for our officers and directors

	Three months				Six months
	ended June 30,				ended June 30,
	2019		2018		2019		2018
Salaries		-		-		-		-
Short-term employee benefits		552		476		1,108		962
Stock-based compensation		1,289,679		913,964		1,967,113		1,920,769
	$	1,290,231	$	914,440	$	1,968,221		1,921,731

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Share capital (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2019 $ / shares shares
Disclosure of financial assets [line items]
Number of outstanding balance, Beginning | shares	5,740,000
Expired / Cancelled | shares	(10,000)
Granted | shares	360,000
Number of outstanding balance, Ending | shares	6,090,000
Options exercisable | shares	6,090,000
Weighted average exercise price, Beginning | $ / shares	$ 1.76
Expired / Cancelled | $ / shares	3.43
Granted | $ / shares	2.08
Weighted average exercise price, Ending | $ / shares	1.78
Options exercisable | $ / shares	$ 1.78
Weighted average remaining contractual life (in years)	6 years 4 months 13 days
Expired / Cancelled	0 years
Granted	9 years 9 months 3 days
Weighted average remaining contractual life options outstanding	6 years 1 month 9 days
Weighted average remaining contractual life options exercisable (in years)	6 years 1 month 9 days

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Share capital (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee expense
Total stock-based compensation expense recognized	$ 1,289,679	$ 913,964	$ 1,980,151	$ 1,920,769
Granted in 2015 [Member]
Employee expense
Total stock-based compensation expense recognized	609,389	913,964	1,286,823	1,920,769
Granted in 2018 [Member]
Employee expense
Total stock-based compensation expense recognized			13,038
Granted in 2019 [Member]
Employee expense
Total stock-based compensation expense recognized	$ 680,290		$ 680,290

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Share capital (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share Capital Details 2Abstract
Stock-based compensation pertaining to general and administrative	$ 984,984	$ 456,982	$ 1,323,701	$ 960,384
Stock-based compensation pertaining to research and development	304,695	456,982	656,450	960,385
Total stock-based compensation expense recognized	$ 1,289,679	$ 913,964	$ 1,980,151	$ 1,920,769

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Share capital (Details Narrative)	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($) $ / shares shares	Jun. 30, 2019 USD ($) Integers / number $ / shares shares
Disclosure of transactions between related parties [line items]
Stock option plan, description		The maximum number of shares which may be optioned under the stock option plan is 7,500,000. The maximum number of shares which may be optioned to any one individual is 15% of the total issued and outstanding common shares. Options under the Plan expire up to ten years after the grant date and vest either immediately or over periods up to six years and are equity-settled.
Stock option available to be granted		1,410,000
Stock option granted		360,000
Number of directors | Integers / number		5
Private Placements [Member]
Disclosure of transactions between related parties [line items]
Proceeds from private placement | $		$ 5,000,000
Common stock shares issued	2,500,000	2,500,000
Share price | $ / shares		$ 2.00
Number of warrants issued	2,500,000	2,500,000
Value of warrant issued | $	$ 200,000	$ 200,000
Term of warrants		5 years
Warrants exercise price | $ / shares	$ 8.00	$ 8.00
Common stock shares issuable upon exercise of each warrant		Each warrant entitles the holder to acquire one common share of the Corporation at an exercise price of $8.00 with a five years term
Common stock issued for services, share	1,000,000
Common stock issued for services, value | $	$ 1,330,000

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Earnings per share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share Details Abstract
Issued common shares at beginning of period	67,926,256	57,842,922	64,676,256	56,378,306
Effect of shares issued	509,483	1,429,855	3,068,304	1,792,078
Weighted average number of common shares outstanding – basic	68,435,739	59,272,777	67,744,560	58,170,384
Weighted average number of shares outstanding – b diluted	68,435,739	59,272,777	67,744,560	58,170,384

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Operation lease and other commitment (Details)	6 Months Ended
	Jun. 30, 2019 USD ($)
Operation Lease And Other Commitment
Operating lease right-of-use assets, beginning balance	$ 393,110
operating lease right-of-use assets, Accumulated amortization	(128,161)
operating lease right-of-use assets, ending balance	$ 264,949

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Operation lease and other commitment (Details 1)	6 Months Ended
	Jun. 30, 2019 USD ($)
Operation Lease And Other Commitment Details 1Abstract
Operating lease liability due within one year, beginning balance	$ 86,061
Operating lease liability due within one year, repayments of lease liability	(41,620)
Operating lease liability due within one year, ending balance	44,441
Operating lease liability long term, beginning balance	318,716
Operating lease liability long term, repayments of lease liability	(83,547)
Operating lease liability long term, other	2,902
Operating lease liability long term, ending balance	238,071
Operating lease liability, beginning balance	404,777
Operating lease liability, repayments of lease liability	(125,167)
Operating lease liability, other	2,902
Operating lease liability, ending balance	$ 282,512

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Operation lease and other commitment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Total future commitment payment due	$ 295,220
Operating lease liability	282,512	$ 404,777
January 1, 2019 [Member]
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Immaterial cumulative adjustment to accumulated deficit upon adoption of IFRS 16	$ 11,667
Description for discount rate changes upon adoption of IFRS 16	The discount rate ranges from 6.89% to 7.10%
Operating lease assets upon adoption of IFRS 16	$ 393,000
Operating lease liabilities upon adoption of IFRS 16	$ 405,000
Average remaining term of lease	1 year 3 months 22 days

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Related Party Transactions (Details) - Officers And Directors [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disclosure of transactions between related parties [line items]
Salaries
Short-term employee benefits	552	476	1,108	962
Stock-based compensation	1,289,679	913,964	1,967,113	1,920,769
Total	$ 1,290,231	$ 914,440	$ 1,968,221	$ 1,921,731

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Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Corporate Legal Counsel [Member]
Disclosure of transactions between related parties [line items]
Amounts paid under contract for services		$ 169,162	$ 102,542
Chief Financial Officers [Member]
Disclosure of transactions between related parties [line items]
Amounts paid under contract for services		$ 240,000	$ 202,500
Private Placements [Member]
Disclosure of transactions between related parties [line items]
Common stock issued for services, share	1,000,000
Common stock issued for services, value	$ 1,330,000
Common stock per share	$ 1.33	$ 1.33