0001062993-13-005469.txt : 20131108 0001062993-13-005469.hdr.sgml : 20131108 20131107210417 ACCESSION NUMBER: 0001062993-13-005469 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20130928 FILED AS OF DATE: 20131108 DATE AS OF CHANGE: 20131107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRAILAR TECHNOLOGIES INC CENTRAL INDEX KEY: 0001210294 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-APPAREL & ACCESSORY STORES [5600] IRS NUMBER: 980359306 STATE OF INCORPORATION: A1 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-50367 FILM NUMBER: 131202352 BUSINESS ADDRESS: STREET 1: SUITE 305-4420 CHATTERTON WAY CITY: VICTORIA STATE: A1 ZIP: V8X 5J2 BUSINESS PHONE: 250-658-8582 MAIL ADDRESS: STREET 1: SUITE 305-4420 CHATTERTON WAY CITY: VICTORIA STATE: A1 ZIP: V8X 5J2 FORMER COMPANY: FORMER CONFORMED NAME: NATURALLY ADVANCED TECHNOLOGIES INC DATE OF NAME CHANGE: 20060330 FORMER COMPANY: FORMER CONFORMED NAME: HEMPTOWN CLOTHING INC DATE OF NAME CHANGE: 20021214 10-Q/A 1 form10qa.htm FORM 10-Q/A Crailar Technologies Inc.: Form 10-Q/A - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q/A
(Amendment No. 1)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 28, 2013

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 000-50367

CRAILAR TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)

British Columbia 98-0359306
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
   
305-4420 Chatterton Way  
Victoria, British Columbia, Canada V8X 5J2
(Address of principal executive offices) (Zip Code)

(250) 658-8582
Registrant’s telephone number, including area code

N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [   ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X] No [   ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [   ] Accelerated filer [X]
Non-accelerated filer [   ]
(Do not check if a smaller reporting company)
Smaller reporting company [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [   ] No [X]

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date. 44,472,698 shares of common stock as of November 6, 2013.


EXPLANATORY NOTE

The sole purpose of this Amendment to Crailar Technologies Inc.’s quarterly report on Form 10-Q for the quarterly period ended September 28, 2013, filed with the Securities and Exchange Commission on November 7, 2013 (the “Form 10-Q”), is to provide the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language) to provide Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL. No other changes have been made to the Form 10-Q.

2



Item 6. Exhibits

Exhibit No. Document
3.1

Articles of Incorporation, as amended (15)

3.2

Bylaws (1)

4.1

Convertible Debenture Indenture among Crailar Technologies Inc. and Computershare Trust Company of Canada, dated September 20, 2012 (20)

4.2

Convertible Debenture Indenture among Crailar Technologies Inc. and Computershare Trust Company of Canada, dated February 25, 2013 (18)

4.3

Form of Subscription Agreement for Secured Subordinated Convertible Debentures (18)

4.4

Convertible Debenture Indenture among Crailar Technologies Inc. and Computershare Trust Company of Canada, dated July 26, 2013 (21)

4.5

Form of Subscription Agreement for Secured Convertible Debentures (21)

4.6

Form of Warrant (21)

10.1

Collaboration Agreement dated effective May 7, 2004 between Hemptown Clothing, Inc., and the National Research Council of Canada (2)

10.2

Renewed Collaboration Agreement dated effective December 7, 2007 between Crailar Fiber Technologies Inc., and the National Research Council of Canada (2)

10.3

Amendment to the Renewed Collaboration Agreement dated effective February 19, 2010 between Naturally Advanced Technologies Inc. and the National Research Council of Canada (2)

10.4

Master Agreement for Technology Development between Alberta Research Council and Crailar Fiber Technologies dated January 1, 2007 (3)

10.5

CEO Executive Services Agreement between Naturally Advanced Technologies Inc. and Meriwether Accelerators LLC dated November 27, 2007 with effective date of August 24, 2007 (4)

10.6

2006 Stock Option Plan (5)

10.7

Letter Agreement dated September 2, 2008 between Naturally Advanced Technologies Inc. and Lipper/Heilshorn & Associates, Inc. (6)

10.8

Renewal of CEO Executive Services Agreement between Naturally Advanced Technologies Inc. and Meriwether Accelerators LLC dated October 14, 2008 (7)

10.9

2008 Fixed Share Stock Option Plan (8)

10.10

CEO Executive Services Agreement between Naturally Advanced Technologies Inc. and Kenneth Barker, dated for reference August 24, 2009 (10)

10.11

Service Agreement between Naturally Advanced Technologies Inc. and OrganicWorks Marketing LLC dated November 25, 2010 (10)

10.12

Equipment Lease and Location Sublease dated August 9, 2010 between Naturally Advanced Technologies Inc. and Eastern Flax of South Carolina, LLC (11)

10.13

2010 Fixed Share Option Plan (12)

10.14

Lease Agreement, dated June 30, 2011 between 0702311 BC Ltd. and Naturally Advanced Technologies Inc. (14)

10.15

Office Lease Agreement dated August 8, 2011 between Naturally Advanced Technologies Inc. and MDW Properties, LLC (14)

10.16

Lease Agreement dated July 1, 2011 between Naturally Advanced Technologies Inc. and Jessie Dale McCollough (14)

10.17

2011 Fixed Share Option Plan (13)

10.18

Supply Agreement among Crailar Technologies Inc. and Kowa Company Ltd., dated January 10, 2013 (16)

10.19

Development Agreement among Crailar Technologies Inc. and Cotswold Industries Inc., dated February 10, 2013 (17)

10.20

Senior Executive Employment Agreement between the Company and Kenneth Barker, dated April 2, 2012 (20)

10.21

Senior Executive Employment Agreement between the Company and Guy Prevost, dated April 2, 2012 (20)

10.22

Senior Executive Employment Agreement between the Company and Jason Finnis, dated April 2, 2012 (20)

10.23

Senior Executive Employment Agreement between the Company and Larisa Harrison, dated April 2, 2012 (20)

10.24

Senior Executive Employment Agreement between the Company and Jay Nalbach, dated April 24, 2012 (20)

10.25

Senior Executive Employment Agreement between the Company and Tom Robinson dated June 18, 2012 (20)

10.26

Marketing and Development Agreement among Crailar Technologies Inc. and Cone Denim LLC., dated March 11, 2013 (19)

3



10.27

Demand Convertible Promissory Note from Crailar Technologies Inc. to Robert Edmunds, dated October 11, 2013 (22)

14.1

Corporate Governance Policy (9)

14.2

Corporate Disclosure Policy (9)

14.3

Securities Trading Policy (9)

14.4

Board of Directors Charter (9)

14.5

Terms of Reference for the Chief Financial Officer (9)

14.6

Terms of Reference of Committee Chairs (9)

14.7

Audit Committee Charter (9)

14.8

Corporate Governance Committee Charter (9)

14.9

Compensation Committee Charter (9)

14.10

Disclosure Charter Policy (9)

14.11

Code of Ethics (9)

14.12

Insider Trading and Reporting Guidelines (9)

31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act.*

31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act.*

32.1

Certification of Chief Executive Officer and Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

101.INS

XBRL Instance Document*

101.SCH

XBRL Taxonomy Extension Schema*

101.CAL

XBRL Taxonomy Extension Calculation Linkbase*

101.DEF

XBRL Taxonomy Extension Definition Linkbase*

101.LAB

XBRL Taxonomy Extension Label Linkbase*

101.PRE

XBRL Taxonomy Extension Presentation Linkbase*


* Filed herewith.
(1)

Filed as an exhibit to our Form 10-KSB for fiscal year ended December 31, 2004, as filed with the SEC on March 31, 2005.

(2)

Filed as an exhibit to our Form 8-K as filed with the SEC on March 8, 2010.

(3)

Filed as an exhibit to our Form 8-K as filed with the SEC on June 25, 2007.

(4)

Filed as an exhibit to our Form 8-K as filed with the SEC on December 21, 2007.

(5)

Filed as an exhibit to our Form 10-KSB for fiscal year ended December 31, 2006 as filed with the SEC Commission on March 31, 2007.

(6)

Filed as an exhibit to our Form 8-K as filed with the SEC on September 8, 2008.

(7)

Filed as an exhibit to our Form 8-K as filed with the SEC on October 28, 2008.

(8)

Filed as an exhibit to our Form S-8 as filed with the SEC on October 10, 2008.

(9)

Filed as an exhibit to our Form 10-KSB for fiscal year ended December 31, 2007 as filed with the SEC on April 11, 2008.

(10)

Filed as an exhibit to our Form 10-K for the fiscal year ended December 31, 2010, as filed with the SEC on April 13, 2010.

(11)

Filed as an exhibit to our Form 8-K as filed with the SEC on August 12, 2010.

(12)

Filed as an exhibit to our Form 10-Q for the quarter ended September 30, 2010, as filed with the SEC on November 15, 2011.

(13)

Filed as an exhibit to our Form S-8 as filed with the SEC on February 16, 2012.

(14) 

Filed as an exhibit to our Form 10-Q for the quarter ended March 31, 2012, as filed with the SEC on May 11, 2012.

(15)

Filed as an exhibit to our Form 8-K as filed with the SEC on November 1 2012.

(16)

Filed as an exhibit to our Form 8-K as filed with the SEC on January 16, 2013.

(17)

Filed as an exhibit to our Form 8-K as filed with the SEC on February 14, 2013.

(18)

Filed as an exhibit to our Form 8-K as filed with the SEC on February 26, 2013.

(19)

Filed as an exhibit to our Form 8-K as filed with the SEC on March 14, 2013.

(20)

Filed as an exhibit to our Form 10-K as filed with the SEC on March 18, 2013.

(21)

Filed as an exhibit to our Form 8-K as filed with the SEC on July 31, 2013.

(22)

Filed as an exhibit to our Form 10-Q for the quarter ended September 28, 2013, as field with the SEC on November 7, 2013.

4


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.

CRAILAR TECHNOLOGIES INC.

By: /s/ Kenneth C. Barker  
  Kenneth C. Barker  
  Chief Executive Officer and a director  
  Date: November 7, 2013  
     
By: /s/ Theodore Sanders  
  Theodore Sanders  
  Chief Financial Officer  
  Date: November 7, 2013  


EX-31.1 2 exhibit31-1.htm EXHIBIT 31.1 Crailar Technologies Inc.: Exhibit 31.1 - Filed by newsfilecorp.com

Exhibit 31.1

CERTIFICATION

I, Kenneth C. Barker, certify that:

1.

I have reviewed this report on Form 10-Q for the quarterly period ended September 28, 2013 of Crailar Technologies Inc.;

   
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 registrant as of, and for, the periods presented in this report;

   
4.

The registrant’s other certifying officer(s) 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 Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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 registrant, 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 generally accepted accounting principles;

     
  (c)

Evaluated the effectiveness of the registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.

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


  (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 registrant’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 registrant’s internal control over financial reporting.

Date: November 7, 2013

/s/ Kenneth C. Barker
By:           Kenneth C. Barker
Title:        Chief Executive Officer and a director
                 (Principal Executive Officer)


EX-31.2 3 exhibit31-2.htm EXHIBIT 31.2 Crailar Technologies Inc.: Exhibit 31.2 - Filed by newsfilecorp.com

Exhibit 31.2

CERTIFICATION

I, Theodore Sanders, certify that:

1.

I have reviewed this report on Form 10-Q for the quarterly period ended September 28, 2013 of Crailar Technologies Inc.;

   
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 registrant as of, and for, the periods presented in this report;

   
4.

The registrant’s other certifying officer(s) 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 Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and 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 registrant, 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 generally accepted accounting principles;

     
  (c)

Evaluated the effectiveness of the registrant’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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.

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


  (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 registrant’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 registrant’s internal control over financial reporting.

Date: November 7, 2013

/s/ Theodore Sanders
By:               Theodore Sanders
Title:            Chief Financial Officer
                     (Principal Financial Officer)


EX-32.1 4 exhibit32-1.htm EXHIBIT 32.1 Crailar Technologies Inc.: Exhibit 32.1 - Filed by newsfilecorp.com

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Kenneth C. Barker, the Chief Executive Officer and Theodore Sanders, the Chief Financial Officer, of Crailar Technologies Inc. (the “Company”), each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Quarterly Report on Form 10-Q for the period ended September 28, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of the Company.

/s/ Kenneth C. Barker
Kenneth C. Barker
Chief Executive Officer and a director
(Principal Executive Officer)
Date: November 7, 2013

/s/ Theodore Sanders
Theodore Sanders
Chief Financial Officer
(Principal Financial Officer)
Date: November 7, 2013

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to Crailar Technologies Inc. and will be retained by Crailar Technologies Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

__________


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width="5%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid">Other</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="22%"> 31,696 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="1%">&#160;</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="22%"> - </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 1px solid" width="2%">&#160;</td> </tr> <tr valign="top"> <td width="5%">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double">&#160;</td> <td align="left" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" style="BORDER-BOTTOM: #000000 3px double" width="22%"> 2,418,901 </td> <td 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style="BORDER-BOTTOM: #000000 3px double" width="12%"> 340,013 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 183,346 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 156,667 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 94,619 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr valign="top"> <td width="5%">&#160;</td> <td align="left">&#160;</td> <td align="left" width="1%">&#160;</td> <td align="center" nowrap="nowrap" width="12%">&#160;</td> <td align="center" nowrap="nowrap" width="2%">&#160;</td> <td align="center" nowrap="nowrap" width="1%">&#160;</td> <td align="center" nowrap="nowrap" width="12%">&#160;</td> <td align="center" nowrap="nowrap" width="2%">&#160;</td> <td align="center" nowrap="nowrap" width="1%">&#160;</td> <td align="center" nowrap="nowrap" width="12%">Net Book Value</td> <td align="center" nowrap="nowrap" width="2%">&#160;</td> <td align="center" nowrap="nowrap" width="1%">&#160;</td> <td align="center" nowrap="nowrap" width="12%">Net Book Value</td> <td 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double" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 156,667 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="1%">$</td> <td align="right" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="12%"> 94,619 </td> <td align="left" bgcolor="#e6efff" style="BORDER-BOTTOM: #000000 3px double" width="2%">&#160;</td> </tr> </table> 158020 67478 90543 77961 125324 96468 28856 7639 56669 19401 37268 9019 340013 183346 156667 94619 <table border="0" cellpadding="0" cellspacing="0" style="border-color: black; font-size: 10pt; border-collapse: collapse; font-family: times new roman,times,serif;" width="100%"> <tr> <td valign="top" width="5%"> <b>5.</b> </td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;"> <b>Derivative Liability</b> </p> </td> </tr> <tr> <td width="5%">&#160;</td> <td>&#160;</td> </tr> <tr> <td width="5%">&#160;</td> <td> <p align="justify" style="font-family: times new roman,times,serif; font-size: 10pt;margin:inherit;">The derivate liability consist of warrants that were originally issued in private placements which have exercise prices denominated in a currency other than the Company&#8217;s functional currency. 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Intangible Assets (Tables)
9 Months Ended
Sep. 28, 2013
Schedule of Intangible Assets and Goodwill [Table Text Block]
                  Net Book Value     Net Book Value  
            Accumulated     September 28,     December 31,  
      Cost     Amortization     2013     2012  
  Patents $ 158,020   $ 67,478   $ 90,543   $ 77,961  
  Trademarks   125,324     96,468     28,856     7,639  
  License fee   56,669     19,401     37,268     9,019  
                           
    $ 340,013   $ 183,346   $ 156,667   $ 94,619  
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Consolidated Statements of Operations (USD $)
3 Months Ended 9 Months Ended 48 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Revenues $ 15,438 $ 0 $ 197,814 $ 0 $ 197,814
Cost of sales 21,936 0 222,755 0 222,755
Gross profit (6,498) 0 (24,941) 0 (24,941)
Expenses          
Advertising and promotion 125,849 225,074 450,902 342,850 1,381,939
Amortization and depreciation 288,661 60,080 636,270 164,678 1,019,133
Consulting and contract labour 104,682 201,137 398,229 590,706 3,271,008
Facility costs 350,834 0 1,460,355 0 1,460,355
General and administrative 355,361 259,492 934,396 671,994 2,957,362
Interest 588,028 41,421 1,382,879 41,425 1,779,541
Professional fees 125,050 96,636 604,186 495,217 2,145,672
Research and development 130,332 292,033 223,287 645,138 2,474,621
Salaries and benefits 1,009,033 935,827 2,832,382 3,123,469 11,649,745
Total Expenses 3,077,830 2,111,700 8,922,886 6,075,477 28,142,376
Loss before other items (3,084,328) (2,111,700) (8,947,827) (6,075,477) (28,169,317)
Other items:          
Gain on disposal of assets 0 0 790 0 790
Write down of equipment (13,368) 0 (13,368) 0 (704,516)
Write down of inventory (2,548,827) 0 (3,422,582) 0 (3,726,245)
Fair Value adjustment derivative liabilities (27,695) 80,197 452,518 (188,972) (113,338)
Other income 0 0 0 0 1,177
Loss from continuing operations (5,674,218) (2,031,503) (11,930,469) (6,264,449) (32,709,449)
Profit from discontinued operations 0 0 0 0 11,317
Net loss (5,674,218) (2,031,503) (11,930,469) (6,264,449) (32,698,132)
Other comprehensive income (loss)          
Exchange differences on translating to presentation currency (443,006) 78,935 304,688 113,669 (10,643)
Total comprehensive loss $ (6,117,224) $ (1,952,568) $ (11,625,781) $ (6,150,780) $ (32,708,775)
XML 15 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative liabilities
9 Months Ended
Sep. 28, 2013
Derivative liabilities [Text Block]
5.

Derivative Liability

   
 

The derivate liability consist of warrants that were originally issued in private placements which have exercise prices denominated in a currency other than the Company’s functional currency. These warrants are non-cash liabilities and the Company is not required to expend any cash to settle these liabilities. The fair value of these warrants as at September 28, 2013 and December 31, 2012 are as follows:

    Exercise price September 28, 2013 December 31, 2012
  275,506 warrants expiring on May 19, 2013 $1.25 $Nil $257,564
  533,887 warrants expiring on Oct 14, 2014 $3.45   $327 $230,471
      $327 $488,035

The fair value of these warrants was determined using the Black-Scholes option pricing model, using the following assumptions:

    September 28, 2013 December 31, 2012
  Volatility 65% 57% - 66%
  Dividend yield - -
  Risk-free interest rate 0.36% 0.12 – 0.25%
  Expected life, in years 0.67 0.38 – 1.73
XML 16 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 17 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Capital Stock (Narrative) (Details) (USD $)
9 Months Ended 48 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period 196,000    
Class of Warrant or Right, Exercises in Period 37,500    
Proceeds from Warrant Exercises $ 46,875    
Class of Warrant or Right, Weighted Average Remaining Contractual Term 2 years 6 months   2 years 6 months
Adjustments to Additional Paid in Capital, Share-based Compensation and Exercise of Stock Options 118,239    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vests in Period 1,393,844 1,288,330  
Stock based compensation 1,642,532 1,944,411 7,780,841
Officers and directors [Member]
     
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period 191,000    
Proceeds from Stock Options Exercised 186,770    
Consulting and contract labour [Member]
     
Stock based compensation 214,398 185,147  
Salaries and benefits [Member]
     
Stock based compensation 1,428,134 1,759,264  
Options for Employees and Consultants [Member]
     
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period 196,000    
Proceeds from Stock Options Exercised $ 192,873    
XML 18 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative liabilities (Tables)
9 Months Ended
Sep. 28, 2013
Schedule of Derivative Instruments [Table Text Block]
    Exercise price September 28, 2013 December 31, 2012
  275,506 warrants expiring on May 19, 2013 $1.25 $Nil $257,564
  533,887 warrants expiring on Oct 14, 2014 $3.45   $327 $230,471
      $327 $488,035
Schedule of Derivative Instruments, Valuation Assumptions [Table Text Block]
    September 28, 2013 December 31, 2012
  Volatility 65% 57% - 66%
  Dividend yield - -
  Risk-free interest rate 0.36% 0.12 – 0.25%
  Expected life, in years 0.67 0.38 – 1.73
XML 19 R27.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Inventory, Current (Details) (USD $)
Sep. 28, 2013
Dec. 31, 2012
Inventory, Net $ 2,418,901 $ 2,904,652
CRAiLAR fiber [Member]
   
Inventory, Net 438,115 0
Decorticated fiber [Member]
   
Inventory, Net 455,912 51,504
Flax seed [Member]
   
Inventory, Net 199,928 1,172,155
Raw flaw fiber feedstock [Member]
   
Inventory, Net 1,293,250 1,680,993
Others [Member]
   
Inventory, Net $ 31,696 $ 0
XML 20 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Events (Narrative) (Details)
9 Months Ended 48 Months Ended 9 Months Ended
Sep. 28, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 28, 2013
USD ($)
Sep. 28, 2013
Demand convertible promissory note in favor of Mr. Robert Edmunds (after period end) [Member]
CAD
Sep. 28, 2013
60 day convertible promissory notes issued in favor of three directors (after period end) [Member]
USD ($)
Sep. 28, 2013
60 day convertible promissory notes issued in favor of three directors (after period end) [Member]
CAD
Sep. 28, 2013
Acquisition of a European facility (after period end) [Member]
USD ($)
Proceeds from Convertible Debt $ 8,143,108 $ 10,231,000 $ 18,194,370 500,000      
Interest Rate       20.00% 12.00% 12.00%  
Notes Issued         146,293 151,925  
Extinguishment of Debt, Amount             $ 1,200,000
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Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) (USD $)
9 Months Ended
Sep. 28, 2013
Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit $ 0.87  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit $ 3.05  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding 6,490,461 6,416,043
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term 2 years 8 months 23 days  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price $ 1.81 $ 1.77
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number 5,490,547  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price $ 1.86  
XML 22 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Derivative Instruments, Valuation Assumptions (Details) (Warrants [Member])
9 Months Ended 12 Months Ended
Sep. 28, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate 65.00%  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate 0.00% 0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate 0.36%  
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term 0 years 8 months 1 day  
Minimum [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate   57.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate   0.12%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term   0 years 4 months 17 days
Maximum [Member]
   
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate   66.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate   0.25%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term   1 year 8 months 23 days
XML 23 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Parties Transactions (Narrative) (Details) (Salaries and benefits [Member], USD $)
9 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Salaries and benefits [Member]
   
Related Party Transaction, Amounts of Transaction $ 1,104,489 $ 766,012
XML 24 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Basis of Presentation
9 Months Ended
Sep. 28, 2013
Basis of Presentation [Text Block]
1.

Basis of Presentation

   
 

These unaudited consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial reporting and the rules and regulations of the Securities and Exchange Commission. They do not include all information and footnotes required by United States generally accepted accounting principles (“U.S. GAAP”) for complete financial statement disclosure. However, except as disclosed herein, there have been no material changes in the information contained in the audited consolidated financial statements for the year ended December 31, 2012, included in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission. Operating results for the period ended September 28, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These interim unaudited consolidated financial statements should be read in conjunction with the information included in the Company’s Form 10-K filed on March 18, 2013 with the U.S. Securities and Exchange Commission.

   
 

Effective fiscal 2013, the Company began to report quarterly results on a 4-4-5 basis, with the quarter ending on the Saturday closest to the last day of each third month. In fiscal 2013, the Company's first quarter ended on March 30, 2013, the second quarter ended on June 29, 2013, the third quarter ended on September 28, 2013 and the fourth quarter will end on December 28, 2013.

   
 

In the opinion of management, the accompanying interim balance sheet and related interim statement of operations and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation in conformity with U.S. GAAP. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.

   
 

The Company’s consolidated financial statements are prepared using US GAAP applicable to a going concern, which contemplates the realization of assets and payment of liabilities in the normal course of business. The Company has incurred losses since inception of $44,163,920 and further losses are anticipated in the development of its business. There can be no assurance that the Company will be able to achieve or maintain profitability. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern.

   
 

The Company evaluated events occurring between September 28, 2013 and the date financial statements were issued.

   
 

Recent accounting pronouncements with future effective dates are not expected to have an impact on the Company’s financial statements.

XML 25 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property and Equipment
9 Months Ended
Sep. 28, 2013
Property and Equipment [Text Block]
3.

Property and Equipment


                  Net Book Value     Net Book Value  
            Accumulated     September 28,     December 31,  
      Cost     Amortization     2013     2012  
  Automobiles $ 58,745   $ 9,835   $ 48,910   $ 57,559  
  Computer equipment   125,732     68,910     56,822     48,398  
  Equipment   538,854     98,387     440,467     359,445  
  Equipment held for sale   70,000     -     70,000     105,045  
  Furniture and fixtures   63,607     36,345     27,262     29,980  
  Leasehold improvements   6,157,226     409,152     5,748,114     4,979,548  
  Production equipment   3,274,400     303,073     2,971,327     -  
  Production equipment in construction   5,740,807     -     5,740,807     7,606,837  
  Website development costs   125,311     106,263     19,048     105,045  
                           
    $ 16,154,722   $ 1,031,965   $ 15,122,757   $ 13,248,688  

 

Depreciation of production equipment and leasehold improvements commenced on January 1, 2013 as the Company’s manufacturing facility started production. During the period ended September 28, 2013, the Company disposed of assets held for sale for a gain of $790 and wrote down equipment for a loss of $13,368.

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Long term debt
9 Months Ended
Sep. 28, 2013
Long term debt [Text Block]
6.

Long Term Debt

   
 

On September 20, 2012, the Company completed the offering of $10,051,262 (CDN$10,000,000) convertible debentures (the “Notes 2012”). The Notes 2012 mature on September 20, 2017. The Notes 2012 bear interest at a rate of 10% per year, payable semi-annually on March 31 and September 30, starting March 31, 2013. As at September 28, 2013, accrued interest of $485,296 (CDN$500,000) was included in accrued liabilities.

   
 

On February 26, 2013, the Company completed an offering of $4,712,068 (CDN$5,000,000) convertible debentures (the “Notes 2013”). The Notes 2013 mature on September 30, 2017. The Notes 2013 bear interest at a rate of 10% per year, payable semi-annually on March 31 and September 30, starting September 30, 2013. As at September 28, 2013, accrued interest of $288,518 (CDN$297,260) was included in accrued liabilities. Non-Canadian resident holders of Note 2013 will be ranked subordinately to Note 2012. Holders of Note 2013 will receive additional interest for the amount equal to the withholding taxes paid by the Company for Canadian tax purpose.

   
 

Holders of Notes 2012 and Notes 2013 have the option to convert at a price of $2.85 (CDN$2.90) per common shares in the capital of the Company at any time prior to the maturity date. The Company may redeem the Notes 2012 and Notes 2013 after September 30, 2015 provided that the market price at the time of the redemption notice is not less than 125% of the conversion price. The conversion rate is subject to standard anti-dilution provisions.

   
 

Notes 2012 and Notes 2013 are secured by a Guaranty and Security Agreement signed with the Company’s wholly-owned subsidiary, Crailar Inc. (“CI”), a Nevada incorporated company. CI provides a security interest over its assets, having an aggregate acquisition cost of no less than US$5,500,000, as security for its guarantee obligation which shall rank in priority to all other indebtedness of CI.

   
 

The Notes 2012 and Notes 2013 do not contain a beneficial conversion feature, as the fair value of the Company’s common stock on the date of issuance was less than the conversion price. All proceeds from the notes were recorded as a debt instrument.

   
 

On July 26, 2013, the Company closed a subordinated convertible debenture for gross proceeds of $3,431,040 (CDN$3,535,000) (the “Notes 2013A). The Notes 2013A will mature on July 26, 2016 and will accrue interest at a rate of 10% per year, payable semi-annually in arrears on March 31 and September 30 commencing September 30, 2013. At the holder’s option, the debentures may be converted into common shares in the capital of the Company at any time up to the earlier of the maturity date and the business day immediately preceding the date specified by the Company for redemption of the debentures. The conversion price, subject to adjustment in certain circumstances, will be CDN$2.00 per share.

 

In addition, the Company issued 800 transferable common share purchase warrants (each, a "Warrant") for each CDN$1,000 of principal amount, resulting in an aggregate of 2,828,000 Warrants, with each Warrant entitling the holder thereof to purchase one additional Share (each, a "Warrant Share") at an exercise price of $1.25 per Warrant Share until July 26, 2016. The Company determined the fair value of the warrants to be $974,386 (CDN$1,003,910) using the Black-Scholes Option Pricing Model with the following assumptions: Expected dividend yield – 0 ; Expected stock price volatility – 56%; Risk-free interest rate – 0.59%; Expected life – 2.83 years.

   
 

The proceeds were allocated to the Notes 2013A and the Warrants based on their relative fair values and accordingly, $2,676,211 (CDN$2,757,300) was allocated to the Notes 2013A and $754,829 (CDN$777,700) was allocated to the Warrants and recorded as a reduction in the Notes 2013A and an increase in additional paid-in capital.

   
 

During the period ending September 28, 2013 the Company recorded amortization of the Notes 2013A discount in the amount of $35,815 (CDN$38,321) which was included in interest expense.

   
 

The Company paid a total of $400,404 (CDN$412,537) and issued 192,360 warrants for agent commission and other expenses for Notes 2013A which has been recorded as deferred debt issuance costs. Each broker warrant entitles the holder to purchase one common share for $1.25 per share for three years from the date of issuance. The fair value of the brokers’ warrant portion calculated using the Black-Scholes Option Pricing Model was $66,278 (CDN$68,286). Of the total costs incurred on the Notes 2013A $364,012 (CDN$375,042) was recorded as deferred debt issuance costs and $102,670 (CDN$105,781) was charged to additional paid-in capital.

   
 

Notes 2013A are secured by a Guaranty and Security Agreement signed with the Company’s wholly-owned subsidiary, Crailar Inc. (“CI”), a Nevada incorporated company. CI provides a security interest over its assets, having an aggregate acquisition cost of no less than US$5,000,000, as security for its guarantee obligation which shall rank in priority to all other indebtedness of CI. These assets are different assets than those referred to above for the Notes 2012 and Notes 2013.

   
 

During the period ended September 28, 2013, the Company recorded $288,462 (CDN$297,202) as interest expenses for the amortization of the deferred issuance costs.

XML 27 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Intangible Assets
9 Months Ended
Sep. 28, 2013
Intangible Assets [Text Block]
4.

Intangible Assets


                  Net Book Value     Net Book Value  
            Accumulated     September 28,     December 31,  
      Cost     Amortization     2013     2012  
  Patents $ 158,020   $ 67,478   $ 90,543   $ 77,961  
  Trademarks   125,324     96,468     28,856     7,639  
  License fee   56,669     19,401     37,268     9,019  
                           
    $ 340,013   $ 183,346   $ 156,667   $ 94,619  
XML 28 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property, Plant and Equipment (Details) (USD $)
Sep. 28, 2013
Dec. 31, 2012
Property, Plant and Equipment, Gross $ 16,154,722  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 1,031,965  
Property, Plant and Equipment, Net 15,122,757 13,248,688
Automobiles [Member]
   
Property, Plant and Equipment, Gross 58,745  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 9,835  
Property, Plant and Equipment, Net 48,910 57,559
Computer equipment [Member]
   
Property, Plant and Equipment, Gross 125,732  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 68,910  
Property, Plant and Equipment, Net 56,822 48,398
Equipment [Member]
   
Property, Plant and Equipment, Gross 538,854  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 98,387  
Property, Plant and Equipment, Net 440,467 359,445
Equipment held for sale [Member]
   
Property, Plant and Equipment, Gross 70,000  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 0  
Property, Plant and Equipment, Net 70,000 105,045
Furniture and fixtures [Member]
   
Property, Plant and Equipment, Gross 63,607  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 36,345  
Property, Plant and Equipment, Net 27,262 29,980
Leasehold improvements [Member]
   
Property, Plant and Equipment, Gross 6,157,226  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 409,152  
Property, Plant and Equipment, Net 5,748,114 4,979,548
Production equipment [Member]
   
Property, Plant and Equipment, Gross 3,274,400  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 303,073  
Property, Plant and Equipment, Net 2,971,327 0
Production equipment in construction [Member]
   
Property, Plant and Equipment, Gross 5,740,807  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 0  
Property, Plant and Equipment, Net 5,740,807 7,606,837
Website development [Member]
   
Property, Plant and Equipment, Gross 125,311  
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment 106,263  
Property, Plant and Equipment, Net $ 19,048 $ 105,045
XML 29 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity (Details) (USD $)
9 Months Ended
Sep. 28, 2013
Class of Warrant or Right, Outstanding, Beginning of Period 3,168,212
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price, Beginning of Period $ 4.01
Class of Warrant or Right, Exercises in Period (37,500)
Class of Warrant or Right, Exercises in Period, Weighted Average Exercise Price $ 1.25
Class of Warrant or Right, Expirations in Period (2,596,825)
Class of Warrant or Right, Expirations in Period, Weighted Average Exercise Price $ 4.17
Class of Warrant or Right, Grants in Period, Net of Forfeitures 3,020,360
Class of Warrant or Right, Grants in Period, Weighted Average Exercise Price $ 1.25
Class of Warrant or Right, Outstanding, End of Period 3,554,247
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price, End of Period $ 1.58
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 28, 2013
Dec. 31, 2012
Dec. 31, 2011
Common Stock, Shares Authorized 100,000,000 100,000,000  
Common Stock, No Par Value         
Common Stock, Shares, Issued 44,472,698 44,239,198 41,701,604
Common Stock, Shares, Outstanding 44,472,698 44,239,198 41,701,604
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Subsequent Events
9 Months Ended
Sep. 28, 2013
Subsequent Events [Text Block]
9.

Subsequent Events

   
 

On October 11, 2013, the Company issued a demand convertible promissory note in favor of Mr. Robert Edmunds, one of its directors, pursuant to a loan from Mr. Edmunds to the Company in the principal amount of CDN$500,000. The promissory note provides for simple interest accruing on the principal amount at the rate of 20% per annum, which is payable in full on repayment of the principal amount. The principal amount, including outstanding interest, is due and payable on the second business day after Mr. Edmunds provides the Company with written notice demanding the repayment thereof (the “Final Repayment Date”). The Company may repay and redeem any portion of the principal amount and its then related interest, in whole or in part, at any time prior to the Final Repayment Date by providing Mr. Edmunds with no less than five calendar days’ prior written notice with such repayment being due and owing at the end of such five-day period. If the Company determines to issue securities by way of any equity and/or debt private placement or financing at the time any outstanding principal and interest on the promissory note is outstanding, then Mr. Edmunds has the right to convert any portion of the then outstanding principal amount and interest into identical securities issued by the Company pursuant to any such financing transaction.

 

Subsequent to the period end, the Company issued 60 day convertible promissory notes in favor of three directors of the Company, pursuant to a loan to the Company in the principal amount of $146,293 (CDN$151,925).  The promissory note provides for simple interest accruing on the principal amount at the rate of 12% per annum, which is payable in full on repayment of the principal amount.  

Subsequent to the period end, the Company acquired a European facility with no capital by retiring $1.2 million of the vendors’ debt over a three year period. Additionally, CRAiLAR entered into a ten-year lease and option to purchase agreement on the building housing the facility with a renewal option for an additional ten years.
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Consolidated Statements of Cash Flows (USD $)
9 Months Ended 48 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Cash flows used in operating activities      
Net loss from continuing operations $ (11,930,469) $ (6,264,449) $ (32,709,449)
Adjustments to reconcile net loss to net cash from operating activities      
Amortization and depreciation 875,295 164,678 1,261,158
Amortization of deferred debt issuance costs 288,462 0 378,682
Amortization of debt discount 35,815 0 35,815
Rent 114,199 0 234,035
Stock based compensation 1,642,532 1,944,411 7,780,841
Gain on disposal of assets (790) 0 (790)
Write down of equipment 13,368 0 704,516
Write down of inventory 3,422,582 0 3,726,245
Fair value adjustment of derivative liability (452,518) 188,972 113,338
Gain on foreign exchange 0 0 (71,990)
Changes in working capital assets and liabilities      
Decrease (increase) in accounts receivable 33,262 (17,434) 37,917
(Increase) in inventory (2,936,831) (1,821,585) (6,145,146)
(Increase) decrease in prepaid expenses (164,910) 10,974 (201,570)
Increase in accounts payable 607,870 445,889 1,676,427
Increase in accrued liabilities 958,767 115,583 1,703,275
Increase in due to related parties 0 0 56,945
Net cash used in operating activities of continuing operations (7,493,366) (5,232,961) (21,419,751)
Net cash provided by discontinued operations 0 0 79,982
Net cash flows used in operating activities (7,493,366) (5,232,961) (21,339,769)
Cash flows used in investing activities      
Purchase of property and equipment (2,734,667) (6,048,478) (16,374,089)
Acquisition of intangible assets (89,323) (31,740) (194,192)
Net cash flows used in investing activities (2,823,990) (6,080,218) (16,568,281)
Cash flows used in financing activities      
Issuance of capital stock and warrants 239,746 3,545,526 22,203,727
Notes payable 0 0 (200,000)
Convertible Debenture 8,143,108 10,231,000 18,194,370
Deferred issuance costs for convertible debenture (875,981) (1,059,990) (1,959,917)
Related parties payments 0 0 (1,025,960)
Net cash flows from financing activities 7,506,873 12,716,536 37,212,220
Effect of exchange rate changes on cash and cash equivalents 280,247 113,669 (10,643)
Increase (decrease) in cash and cash equivalents (2,530,236) 1,517,026 (706,473)
Cash and cash equivalents, beginning 2,877,210 6,340,505 1,053,477
Cash and cash equivalents, ending 346,974 7,857,531 346,974
SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH FINANCING AND INVESTING ACTIVITIES:      
Cash paid for interest 277,485 7,985 0
Cash paid for income taxes 0 0 0
Capital stock issued as share issue costs $ 0 $ 0 $ 0
XML 35 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Balance Sheets (USD $)
Sep. 28, 2013
Dec. 31, 2012
Current    
Cash and cash equivalents $ 346,974 $ 2,877,210
Accounts receivable 39,030 72,292
Inventory 2,418,901 2,904,652
Prepaid expenses and other 271,695 106,785
Total Current Assets 3,076,600 5,960,939
Deferred Debt Issuance Costs 1,575,421 1,024,294
Property and Equipment, net 15,122,757 13,248,688
Intangible Assets, net 156,667 94,619
Total Assets 19,931,445 20,328,540
Current    
Accounts payable 2,014,288 1,406,418
Accrued liabilities 2,553,590 1,480,624
Derivative Liability 327 488,035
Total Current Liabilities 4,568,205 3,375,077
Long Term Debt 17,272,271 10,051,262
Total Liabilities 21,840,476 13,426,339
STOCKHOLDERS' DEFICIT    
Capital Stock Authorized: 100,000,000 common shares without par value Issued and outstanding: 44,472,698 commons shares (December 31, 2012 - 44,239,198 and December 31, 2011 - 41,701,604) 33,009,970 32,616,795
Subscription receivable (64,050) (64,050)
Additional Paid-in Capital 9,304,136 7,061,406
Accumulated Other Comprehensive Loss 24,296 (459,036)
Deficit (11,485,251) (11,485,251)
Deficit accumulated in the development stage (32,698,132) (20,767,663)
Total Stockholders Equity (1,909,031) 6,902,201
Total Liabilities and Stockholders Equity $ 19,931,445 $ 20,328,540
XML 36 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Intangible Assets and Goodwill (Details) (USD $)
Sep. 28, 2013
Dec. 31, 2012
Finite-Lived Intangible Assets, Gross $ 340,013  
Finite-Lived Intangible Assets, Accumulated Amortization 183,346  
Finite-Lived Intangible Assets, Net 156,667 94,619
Patent [Member]
   
Finite-Lived Patents, Gross 158,020  
Finite-Lived Intangible Assets, Accumulated Amortization 67,478  
Finite-Lived Intangible Assets, Net 90,543 77,961
Trademarks [Member]
   
Finite-Lived Trademarks, Gross 125,324  
Finite-Lived Intangible Assets, Accumulated Amortization 96,468  
Finite-Lived Intangible Assets, Net 28,856 7,639
License Fee [Member]
   
Finite-Lived License Agreements, Gross 56,669  
Finite-Lived Intangible Assets, Accumulated Amortization 19,401  
Finite-Lived Intangible Assets, Net $ 37,268 $ 9,019
XML 37 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long term debt (Narrative) (Details)
9 Months Ended 48 Months Ended 9 Months Ended 12 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended
Sep. 28, 2013
USD ($)
Sep. 28, 2013
CAD
Sep. 30, 2012
USD ($)
Sep. 28, 2013
USD ($)
Dec. 31, 2012
USD ($)
Sep. 28, 2013
Warrants [Member]
Dec. 31, 2012
Warrants [Member]
Sep. 28, 2013
Convertible Notes [Member]
USD ($)
Sep. 28, 2013
Convertible Notes [Member]
CAD
Dec. 31, 2012
Convertible Notes - 2012 [Member]
USD ($)
Dec. 31, 2012
Convertible Notes - 2012 [Member]
CAD
Jun. 29, 2013
Convertible Notes - 2012 [Member]
USD ($)
Jun. 29, 2013
Convertible Notes - 2012 [Member]
CAD
Sep. 28, 2013
Convertible Notes - 2013 [Member]
USD ($)
Sep. 28, 2013
Convertible Notes - 2013 [Member]
CAD
Sep. 28, 2013
Convertible Notes - 2013 [Member]
Agent warrants [Member]
USD ($)
Sep. 28, 2013
Convertible Notes - 2013 [Member]
Agent warrants [Member]
CAD
Sep. 28, 2013
Convertible Notes - 2013 [Member]
Brokers Warrants [Member]
USD ($)
Sep. 28, 2013
Convertible Notes - 2013 [Member]
Brokers Warrants [Member]
CAD
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
USD ($)
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
CAD
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
Warrants [Member]
USD ($)
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
Warrants [Member]
CAD
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
Convertible Notes - 2013 [Member]
USD ($)
Sep. 28, 2013
Closing a subordinated convertible debenture [Member]
Convertible Notes - 2013 [Member]
CAD
Jul. 26, 2013
Closing a subordinated convertible debenture [Member]
Convertible Notes - 2013 [Member]
CAD
Sep. 28, 2013
Naturally Advanced Technologies [Member]
USD ($)
Sep. 28, 2013
Crailar Inc. [Member]
USD ($)
Notes Issued                   $ 10,051,262 10,000,000     $ 4,712,068 5,000,000                          
Debt Instrument, Interest Rate, Stated Percentage                   10.00% 10.00%     10.00% 10.00%                     10.00%    
Interest Payable                       485,296 500,000 288,518 297,260                          
Debt Instrument, Convertible, Conversion Price               $ 2.85 2.90                                 2.00    
Business Acquisition, Cost of Acquired Entity, Purchase Price                                                     5,500,000 5,000,000
Proceeds from Convertible Debt 8,143,108   10,231,000 18,194,370                                       3,431,040 3,535,000      
Class of Warrant or Right, Grants in Period, Net of Forfeitures 3,020,360 3,020,360                           192,360 192,360     2,828,000 2,828,000              
Class of Warrant or Right, Grants in Period, Exercise Price                                   $ 1.25   $ 1.25                
Warrants Issued During Period, Value                                   66,278 68,286 974,386 1,003,910 754,829 777,700 2,676,211 2,757,300      
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate           0.00% 0.00%                         0.00% 0.00%              
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate           65.00%                           56.00% 56.00%              
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate           0.36%                           0.59% 0.59%              
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term           0 years 8 months 1 day                           2 years 9 months 29 days 2 years 9 months 29 days              
Amortization of debt discount 35,815   0 35,815                   35,815 38,321                          
Deferred Issuance costs for convertible debenture 875,981   1,059,990 1,959,917                   364,012 375,042 400,404 412,537                      
Additional Paid-in Capital 9,304,136     9,304,136 7,061,406                 102,670 105,781                          
Amortization of deferred debt issuance costs $ 288,462 297,202                                                    
XML 38 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Parties Transactions
9 Months Ended
Sep. 28, 2013
Related Parties Transactions [Text Block]
8.

Related Parties Transactions

   
 

During the period ended September 28, 2013, $1,104,489 (2012 - $766,012) was incurred for remuneration to officers and directors of the Company which was recorded as salaries and benefits expense.

XML 39 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Derivative Instruments (Details) (USD $)
Sep. 28, 2013
Dec. 31, 2012
Class of Warrant or Right, Outstanding 3,554,247 3,168,212
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price $ 1.58 $ 4.01
Expiring on May 19, 2013 [Member]
   
Class of Warrant or Right, Outstanding 275,506  
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price $ 1.25  
Warrants and Rights Outstanding $ 0 $ 257,564
Expiring on October 14, 2014 [Member]
   
Class of Warrant or Right, Outstanding 533,887  
Class of Warrant or Right, Outstanding, Weighted Average Exercise Price $ 3.45  
Warrants and Rights Outstanding 327 230,471
Warrants [Member]
   
Warrants and Rights Outstanding $ 327 $ 488,035
XML 40 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property and Equipment (Tables)
9 Months Ended
Sep. 28, 2013
Property, Plant and Equipment [Table Text Block]
                  Net Book Value     Net Book Value  
            Accumulated     September 28,     December 31,  
      Cost     Amortization     2013     2012  
  Automobiles $ 58,745   $ 9,835   $ 48,910   $ 57,559  
  Computer equipment   125,732     68,910     56,822     48,398  
  Equipment   538,854     98,387     440,467     359,445  
  Equipment held for sale   70,000     -     70,000     105,045  
  Furniture and fixtures   63,607     36,345     27,262     29,980  
  Leasehold improvements   6,157,226     409,152     5,748,114     4,979,548  
  Production equipment   3,274,400     303,073     2,971,327     -  
  Production equipment in construction   5,740,807     -     5,740,807     7,606,837  
  Website development costs   125,311     106,263     19,048     105,045  
                           
    $ 16,154,722   $ 1,031,965   $ 15,122,757   $ 13,248,688  
XML 41 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Capital Stock
9 Months Ended
Sep. 28, 2013
Capital Stock [Text Block]
7.

Capital Stock

   
 

During the period ended September 28, 2013, the Company issued shares as follows:


  a.

A total of 196,000 shares were issued pursuant to the exercise of employee and consultants options for proceeds of $192,873. Options totaling 191,000, with proceeds of $186,770 were exercised by the directors and officers of the Company.

     
  b.

A total of 37,500 shares were issued pursuant to the exercise of warrants for proceeds of $46,875.

Share purchase warrants outstanding as at September 28, 2013 are:

    Warrants Weighted-Average Exercise Price
  Warrants outstanding, December 31, 2012    
    3,168,212 $4.01
  Warrants exercised (37,500) $1.25
  Warrants expired (2,596,825) $4.17
  Warrants issued 3,020,360 $1.25
  Warrants outstanding, September 28, 2013    
    3,554,247 $1.58

The weighted average remaining contractual life of outstanding warrants at September 28, 2013, is 2.50.

Stock options outstanding as at September 28, 2013 are:

    Shares Weighted-Average Exercise Price
  Options outstanding, December 31, 2012 6,416,043 $1.77
  Options granted 285,000 2.25
  Options exercised (196,000) 0.98
  Options expired (6,249) 1.91
  Options cancelled (8,333) 2.23
  Options outstanding, September 28, 2013    
    6,490,461 $1.81

Stock options outstanding at September 28, 2013, are summarized as follows:

      Weighted Average     Weighted
  Range of   Remaining Weighted   Average
  Exercise Number Contractual Life Average Number Exercise
  Prices Outstanding (yr.) Exercise Price Exercisable Price
  $0.87 - $3.05 6,490,461 2.73 $1.81 5,490,547 $1.86

 

During the period ended September 28, 2013, 196,000 options were exercised and a total of $118,239 has been reclassified from additional paid-in capital to capital stock.

   
 

During the period ended September 28, 2013, 1,393,844 (2012 – 1,288,330) options vested under the Company’s amended 2011 Fixed Share Option Plan. A total expense of $1,642,532 (2012 - $1,944,411) was recorded as stock-based compensation, of this amount $214,398 (2012 - $185,147) was included in consulting and contract labour expense and $1,428,134 (2012 - $1,759,264) was included in salaries and benefits expense.

XML 42 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Inventory
9 Months Ended
Sep. 28, 2013
Inventory [Text Block]
2.

Inventory

   
 

As at September 28, 2013, inventory consists of:


      September 28, 2013     December 31, 2012  
  CRAiLAR fiber $ 438,115   $   -  
  Decorticated fiber   455,912     51,504  
  Flax seed   199,928     1,172,155  
  Raw flax fiber feedstock   1,293,250     1,680,993  
  Other   31,696     -  
    $ 2,418,901   $ 2,904,652  

During the period ended September 28, 2013, the Company wrote off $3,422,582 (2012 - $Nil) of raw flax fiber feedstock, decorticated fiber and seed inventory to reduce the book value to net realizable value.

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Schedule of Share-based Compensation, Stock Options, Activity (Details) (USD $)
9 Months Ended
Sep. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning of Period 6,416,043
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning of Period $ 1.77
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 285,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price $ 2.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (196,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price $ 0.98
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period (6,249)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price $ 1.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period (8,333)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price $ 2.23
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, End of Period 6,490,461
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, End of Period $ 1.81
XML 45 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Capital Stock (Tables)
9 Months Ended
Sep. 28, 2013
Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block]
    Warrants Weighted-Average Exercise Price
  Warrants outstanding, December 31, 2012    
    3,168,212 $4.01
  Warrants exercised (37,500) $1.25
  Warrants expired (2,596,825) $4.17
  Warrants issued 3,020,360 $1.25
  Warrants outstanding, September 28, 2013    
    3,554,247 $1.58
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]
    Shares Weighted-Average Exercise Price
  Options outstanding, December 31, 2012 6,416,043 $1.77
  Options granted 285,000 2.25
  Options exercised (196,000) 0.98
  Options expired (6,249) 1.91
  Options cancelled (8,333) 2.23
  Options outstanding, September 28, 2013    
    6,490,461 $1.81
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]
      Weighted Average     Weighted
  Range of   Remaining Weighted   Average
  Exercise Number Contractual Life Average Number Exercise
  Prices Outstanding (yr.) Exercise Price Exercisable Price
  $0.87 - $3.05 6,490,461 2.73 $1.81 5,490,547 $1.86
XML 46 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Inventory (Tables)
9 Months Ended
Sep. 28, 2013
Schedule of Inventory, Current [Table Text Block]
      September 28, 2013     December 31, 2012  
  CRAiLAR fiber $ 438,115   $   -  
  Decorticated fiber   455,912     51,504  
  Flax seed   199,928     1,172,155  
  Raw flax fiber feedstock   1,293,250     1,680,993  
  Other   31,696     -  
    $ 2,418,901   $ 2,904,652  
XML 47 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property and Equipment (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 48 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Gain on disposal of assets $ 0 $ 0 $ 790 $ 0 $ 790
Write down of equipment $ 13,368 $ 0 $ 13,368 $ 0 $ 704,516
XML 48 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Basis of Presentation (Narrative) (Details) (USD $)
Sep. 28, 2013
Cumulative Deficit $ 44,163,920
XML 49 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information
9 Months Ended
Sep. 28, 2013
Nov. 06, 2013
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 28, 2013  
Trading Symbol crlrf  
Entity Registrant Name CRAILAR TECHNOLOGIES INC  
Entity Central Index Key 0001210294  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   44,472,698
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well Known Seasoned Issuer No  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q3  
XML 50 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Inventory (Narrative) (Details) (USD $)
3 Months Ended 9 Months Ended 48 Months Ended
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Sep. 30, 2012
Sep. 28, 2013
Write down of inventory $ 2,548,827 $ 0 $ 3,422,582 $ 0 $ 3,726,245
Raw flax fiber feedstock and decorticated fiber [Member]
         
Write down of inventory     $ 3,422,582 $ 0