10-Q

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

FORM 10-Q

(Mark One)

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

For the quarterly period ended: June 30, 2015

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to _____

Commission File Number: 000-51652

ANAVEX LIFE SCIENCES CORP.
(Exact name of registrant as specified in its charter)

Nevada	98-0608404
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

51 West 52^nd Street, 7^th Floor, New York, NY USA 10019
(Address of principal executive offices) (Zip Code)

1-844-689-3939
(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 Securities 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.
[ X ]  Yes  [  ]  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
[ X ]  Yes  [  ]  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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

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

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
120,446,116 shares of common stock outstanding as of August 14, 2015.

ii

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION	1
ITEM 1. FINANCIAL STATEMENTS.	1
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.	2
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS.	9
ITEM 4. CONTROLS AND PROCEDURES.	10
PART II – OTHER INFORMATION	11
ITEM 1. LEGAL PROCEEDINGS.	11
ITEM 1A. RISK FACTORS.	11
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.	11
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.	11
ITEM 4. MINE SAFETY DISCLOSURES	11
ITEM 5. OTHER INFORMATION.	11
ITEM 6. EXHIBITS.	12
SIGNATURES	13

iii

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

ANAVEX LIFE SCIENCES CORP.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2015

(Unaudited)

1

ANAVEX LIFE SCIENCES CORP.
INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 2015 and September 30, 2014
(Unaudited)

ASSETS
		June 30,			September 30,
		2015			2014
Current
Cash	$	7,961,331		$	7,262,138
Prepaid expenses		16,054			89,117
		7,977,385			7,351,255
Equipment		1,501			2,247
	$	7,978,886		$	7,353,502
LIABILITIES
Current
Accounts payable and accrued liabilities	$	1,259,051		$	1,249,084
Promissory notes payable		92,516			192,065
		1,351,567			1,441,149
Non-interest bearing liabilities		57,962			5,719,727
		1,409,529			7,160,876
STOCKHOLDERS' EQUITY
Capital stock
Authorized:          400,000,000 common shares, par value $0.001 per share      Issued and outstanding:          86,216,609 common shares (September 30, 2014 - 47,200,237)		86,217			47,201
Additional paid-in capital		65,030,871			52,078,750
Common stock to be issued		777,415			640,000
Accumulated deficit		(59,325,146	)		(52,573,325	)
		6,569,357			192,626
	$	7,978,886		$	7,353,502

SEE ACCOMPANYING NOTES

F-1

ANAVEX LIFE SCIENCES CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the three and nine months ended June 30, 2015 and 2014
(Unaudited)

		Three months ended June 30,						Nine months ended June 30,
		2015			2014			2015			2014
Operating expenses
General and administrative - Notes 8 and 9	$	713,498		$	733,818		$	1,616,744		$	1,941,261
Research and development		799,462			265,015			1,525,233			388,347
Total operating expenses		(1,512,960	)		(998,833	)		(3,141,977	)		(2,329,608	)
Other income (expenses)
Interest and finance income (expenses), net		1,254			(8,492	)		(73,527	)		(16,858	)
Financing related charges and adjustments		(2,716,640	)		5,420			(3,591,346	)		687,409
Foreign exchange gain (loss)		(11,898	)		(7,185	)		55,029			(10,256	)
Total other income (expenses), net		(2,727,284	)		(10,257	)		(3,609,844	)		660,295
Net loss and comprehensive loss for the period	$	(4,240,244	)	$	(1,009,090	)	$	(6,751,821	)	$	(1,669,313	)
Loss per share
Basic	$	(0.06	)	$	(0.03	)	$	(0.11	)	$	(0.04	)
Diluted	$	(0.06	)	$	(0.03	)	$	(0.11	)	$	(0.04	)
Weighted average number of shares outstanding
Basic		76,380,219			39,260,098			61,752,000			38,218,237
Diluted		76,380,219			39,260,098			61,752,000			38,218,237

SEE ACCOMPANYING NOTES

F-2

ANAVEX LIFE SCIENCES CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
for the nine months ended June 30, 2015 and 2014
(Unaudited)

		2015			2014
Cash Flows used in Operating Activities
Net loss for the period	$	(6,751,821	)	$	(1,669,313	)
Adjustments to reconcile net loss to net cash used in operations:
Amortization and depreciation		746			576
Accretion of debt discount		3,109,188			1,091
Stock-based compensation		265,457			9,589
Common shares to be issued for services		-			610,000
Amortization of deferred financing charge		-			10,047
Non-cash financing related charges		29,000			(683,000	)
Change in fair value of derivative financial instruments		567,000			-
Gain on extinguishment of debt		(84,842	)		(5,500	)
Unrealized foreign exchange		(11,405	)		(10,028	)
Changes in non-cash working capital balances related to operations:
Prepaid expenses		17,099			(19,000	)
Accounts payable and accrued liabilities		65,931			13,014
Net cash used in operating activities		(2,793,647	)		(1,742,524	)
Cash Flows used in Investing Activities
Acquisition of equipment		-			(2,327	)
Net cash used in investing activities		-			(2,327	)
Cash Flows provided by Financing Activities
Issuance of common shares		3,580,984			368,170
Financing fees paid					(788,712	)
Repayment of promissory note		(88,144	)		-
Proceeds from the issuance of convertible debentures		-			10,000,000
Net cash provided by financing activities		3,492,840			9,579,458
Increase in cash during the period		699,193			7,834,607
Cash, beginning of period		7,262,138			345,074
Cash, end of period	$	7,961,331		$	8,179,681

Supplemental Cash Flow Information - Note 10

SEE ACCOMPANYING NOTES

F-3

ANAVEX LIFE SCIENCES CORP.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
for the nine months ended June 30, 2015
(Unaudited )

	Common Stock
					Additional			Common
					Paid-in			Shares to be			Accumulated
	Shares		Par Value		Capital			Issued			Deficit			Total
Balance,October 1, 2014	47,200,237	$	47,201	$	52,078,750		$	640,000		$	(52,573,325	)	$	192,626
Capital stock issued pursuant to debt conversions - at $0.25	23,232,227		23,232		5,107,464			167,415			-			5,298,111
Capital stock issued for cash - at $0.25	2,000,000		2,000		-			-			-			2,000
Capital stock issued pursuant to subscriptions received - at $0.30	100,000		100		29,900			(30,000	)					-
Shares issued pursuant to the exercise of warrants - at $0.30	10,269,945		10,270		3,070,714			-			-			3,080,984
Shares issued pursuant to the exercise of warrants - cashless	779,753		780		(780	)		-			-			-
Shares issued pursuant to favored nations provision	2,634,447		2,634		(2,634	)		-			-			-
Reclassification of derivative liability	-		-		4,482,000			-			-			4,482,000
Stock based compensation	-		-		265,457			-			-			265,457
Net loss for the period	-		-		-			-			(6,751,821	)		(6,751,821	)
Balance, June 30, 2015	86,216,609	$	86,217	$	65,030,871		$	777,415		$	(59,325,146	)	$	6,569,357

SEE ACCOMPANYING NOTES

F-4

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
(Unaudited)

Note 1 Business Description and Basis of Presentation

Business

Anavex Life Sciences Corp. (the “Company”) is a clinical stage biopharmaceutical company engaged in the development of drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, and various types of cancer. The Company’s lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat Alzheimer’s disease and potentially other central nervous system (CNS) diseases.

In December 2014 a Phase 2a clinical trial was initiated for ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer’s disease. The randomized trial is designed to assess the safety and exploratory efficacy of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in patients with mild to moderate Alzheimer’s disease. ANAVEX 2-73 targets sigma-1 and muscarinic receptors, which have been shown in preclinical studies to reduce stress levels in the brain and to reverse the pathological hallmarks observed in Alzheimer’s disease. ANAVEX 2-73 showed no serious adverse events in a previously performed Phase 1 study. In pre-clinical studies, ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various animal models including the transgenic mouse model Tg2576.

The Company intends to identify and initiate discussions with potential partners in the next 12 months. Further, the Company may acquire or develop new intellectual property and assign, license, or otherwise transfer our intellectual property to further its goals.

Basis of Presentation

These interim condensed consolidated financial statements have been prepared, without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. These interim condensed financial statements should be read in conjunction with the audited financial statements included in its annual report on Form 10-K for the year ended September 30, 2014. The Company follows the same accounting policies in the preparation of interim reports.

Operating results for the nine months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2015.

F-5

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015 Stated in US Dollars
(Unaudited) – Page 2

Basic and Diluted Loss per Share

The basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the weighted average of all potentially dilutive shares of common stock that were outstanding during the period. Additionally, the numerator is also adjusted for changes in fair value of the derivative financial instruments where it is presumed they will be share settled.

As of June 30, 2015, loss per share excludes 79,331,465 (2014 – 77,905,632) potentially dilutive common shares related to outstanding options, warrants, and convertible debentures as their effect was anti-dilutive.

Note 2 Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

In May, 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

F-6

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 3

Note 2 Recent Accounting Pronouncements – (cont’d)

In April 2015, the Financial Accounting Standards Board (FASB), issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. For public business entities, the final guidance will be effective for fiscal years beginning after December 15, 2015, however, early adoption (including in interim periods) is permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. An entity is also required in the year of adoption to provide certain disclosures about the change in accounting principle, including the nature of and reason for the change, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The Company plans to adopt this standard beginning October 1, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

Note 3 Equipment

				June 30, 2015
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	1,514	$	1,501

				September 30, 2014
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	768	$	2,247

F-7

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 4

Note 4 Promissory Notes Payable

		June 30,		September 30,
		2015		2014
Promissory note dated December 31, 2012 with a principal balance of CDN$100,000 bearing interest at 12% per annum, due on September 30, 2014	$	-	$	89,618
Promissory note dated January 9, 2013 with a principal balance of CDN$86,677, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		70,148		77,679
Promissory note dated January 9, 2013 with a principal balance of CDN$27,639, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		22,368		24,768
	$	92,516	$	192,065

On December 31, 2012, the Company issued a promissory note having a principal balance of CDN$100,000, with terms that included interest at 12% per annum and matured on June 30, 2013, in exchange for an accounts payable owing with respect to unpaid consulting fees. This note was not repaid on June 30, 2013 and the maturity date was extended to September 30, 2014. The Company repaid this note during the nine months ended June 30, 2015.

On January 9, 2013, the Company issued two (2) promissory notes (the “Secured Notes”);

a)	The Company issued a promissory note in the amount of CDN$86,677 to the former President, Secretary, Treasurer, CFO and director of the Company (the “President”) in exchange for unpaid consulting fees owing to the President. The note is bearing interest at 12% per annum and was due June 30, 2013.
b)	The Company issued a promissory note in the amount of CDN$27,639 to a former director of the Company (the “Director”) in exchange for unpaid consulting fees owing to the Director. The note is bearing interest at 12% per annum and was due June 30, 2013.

The Secured Notes are secured by a right to delay the transfer of any or all of the Company’s assets until the obligations of the Secured Notes are satisfied, including a restriction on the transfer of cash by the Company and a security interest over the intellectual property of the Company. The security interests of the Secured Notes is ranked senior to any and all security interests granted prior to the issuance of the notes and to all subsequent security interests granted, unless the holders agree in writing to other terms.

F-8

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 5

Note 4 Promissory Notes Payable – (cont’d)

In addition, the Secured Notes contain a provision whereby if they are not repaid within 10 days of their maturity dates, they shall bear late fees in addition to interest accruing, at a rate of $100 per day per note. In an event of default by the Company, under the terms of the Secured Notes, the notes shall bear additional late fees of $500 per day per note.

Subsequent to the issuance of these Secured Notes, the former President resigned as President, Secretary, Treasurer, CFO and director of the Company and the former Director resigned as director of the Company.

The Company did not repay the notes on June 30, 2013. The Company has disputed the issuance and enforceability of the Secured Notes and should there be an attempt to enforce the Secured Notes or collection on them, the Company will consider a legal remedy. The Company has not accrued any late fees in connection with these Secured Notes as of June 30, 2015 or September 30, 2014, as the Company does not consider these amounts to be legally enforceable.

F-9

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 6

Note 5 Non-interest Bearing Liabilities

Non-interest bearing liabilities consists of the following:

		June 30,		September 30,
		2015		2014
Senior Convertible Debentures	$	57,962	$	263,727
Derivative Financial Instruments		-		5,456,000
	$	57,962	$	5,719,727

Senior Convertible Debentures

		June 30,			September 30,
		2015			2014
Senior Convertible Debentures, non-interest
bearing, unsecured, due March 18, 2044		1,470,573			7,446,044
Less: Debt Discount		(1,412,611	)		(7,182,317	)
Total carrying value		57,962			263,727
Less: current portion		-			-
Long term liability	$	57,962		$	263,727

On March 13, 2014, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Purchasers”) pursuant to which the Company issued senior convertible debentures in the aggregate principal amount of $10,000,000 (the “Debentures”).

In connection with the issuance of the Debentures, the Company issued an aggregate of 67,666,666 share purchase warrants as follows:

		Non-
	Purchasers	purchasers	Total
Series A Warrants	33,333,333	500,000	33,833,333
Series B Warrants	33,333,333	500,000	33,833,333
	66,666,666	1,000,000	67,666,666

Each Series A warrant is exercisable into one common share of the Company at $0.30 per share until March 18, 2019.

Each Series B warrant is exercisable into one common share of the Company at $0.42 per share until March 18, 2019

The Debentures are unsecured, non-interest bearing and are due on March 18, 2044. The Debentures were originally convertible, in whole or in part, at the option of the holder into common shares of the Company at $0.30 per share (“the Conversion Price”). The Conversion Price of the debenture will be adjusted in the event of common stock dividend, split or consolidation. The Conversion Price was later amended to $0.25 per share, as set forth below.

F-10

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 7

Note 5 Non-interest Bearing Liabilities – (cont’d)

Senior Convertible Debentures – (cont’d)

Pursuant to the guidance of ASC 470-20 Debt with Conversion and Other Options, the Company allocated the proceeds from the issuance of the Debentures between the Debentures and the detachable Purchaser warrants using the relative fair value method. The fair value of the Purchaser warrants of $22,326,200 at issuance resulted in a debt discount at issuance of $5,989,900.

The Company recorded a beneficial conversion feature discount of $4,010,100 in respect of the Debentures issued, based on the intrinsic value of the conversion feature limited to a maximum of the total proceeds of the Debentures allocated to the Debentures.

The total debt discount at issuance of $10,000,000 was being amortized using the effective interest method over the term of the Debentures.

In consideration for the Debentures issued, the Company issued an aggregate of 1,000,000 share purchase warrants to non-lenders as described above. The fair value of the Non-Purchaser Warrants of $334,900, along with finder’s fees and other financing costs directly associated with the issuance of the Debentures in the amount of $788,712, was recorded as a deferred financing charge and was being amortized to income over the term of the Debentures using the effective interest method.

The fair value of the Purchaser and Non-Purchaser warrants at issuance was determined using the Black Scholes option pricing model with the following weighted average assumptions:

Risk-free interest rate	1.56%
Expected life (years)	5.00
Expected volatility	97.16%
Dividend yields	0.00%

In connection with the Purchase Agreement, the Company also entered into a registration rights agreement with each Purchaser (the “RRA”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of the shares of the Company’s common stock issuable upon conversion of the Debentures and upon exercise of the Purchaser warrants.

On July 23, 2014, the registration statement was declared effective by the SEC.

F-11

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 8

Note 5 Non-interest Bearing Liabilities – (cont’d)

Senior Convertible Debentures – (cont’d)

Amendment Agreements

On August 25, 2014, the Company entered into amendment agreements with each Purchaser, pursuant to which all provisions regarding liquidating damages and the accrual of damages with respect to the obligations for, and rights enforceable against, the Company, were eliminated from the RRAs. As consideration for entering into the amendment agreements and for the Purchasers agreeing to forego an amount of $459,912 in liquidating damages that had accrued and were accruing pursuant to the terms of the original RRAs, the Company agreed to adjust the fixed conversion price of the remaining outstanding debentures from $0.30 per share to $0.25 per share (the “Debenture Amendment”).

The Company assessed the guidance under ASC 470-60 Troubled Debt Restructurings and determined that this guidance did not apply to the Debenture Amendment. The Debenture Amendment was considered a substantial change in the terms of the debentures pursuant to ASC 470-50 Modifications and Extinguishments and accordingly, the Company was required to apply debt extinguishment accounting. Consequently, the Company calculated a net non-cash loss on extinguishment of debt of $8,099,137 as the premium of the aggregate fair value of the amended debentures over their aggregate carrying values of $906 immediately prior to the Debenture Amendment and the gain from the forgiveness of accrued liquidating damages of $459,912. This amount is included in other financing related charges and adjustments on the consolidated statement of operations during the year ended September 30, 2014.

The Company calculated the fair value of the amended Debentures by discounting future cash flows using rates representative of current borrowing rates for debt instruments without a conversion feature and by using the binomial option pricing model to determine the fair value of the conversion features, using the following assumptions:

Risk-free interest rate	3.13%
Expected life (years)	29.58
Expected volatility	100.71%
Dividend yields	0.00%

In addition, in accordance with debt extinguishment accounting, remaining unamortized financing costs of $1,110,568 associated with the original Debentures were immediately amortized through earnings upon entering into the amendments. This amount is also included in other financing related charges and adjustments in the consolidated statement of operations during the year ended September 30, 2014.

F-12

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 9

Note 5 Non-interest Bearing Liabilities – (cont’d)

Senior Convertible Debentures – (cont’d)

During the nine months ended June 30, 2015, the Company issued an aggregate of 23,232,227 shares of common stock and an additional 669,657 shares of common stock are to be issued based on a conversion price of $0.25 per share pursuant to the conversion of $5,975,471 in outstanding principal amounts due under the Debentures.

As a result of the bifurcation of the embedded conversion option subsequent to the Debenture Amendments as discussed above, for accounting purposes, two instruments were considered outstanding and, upon exercise of the contractual conversion option, extinguishment accounting was applied. Consequently, the embedded conversion feature was adjusted to fair value at the conversion date and the shares issued pursuant to conversion were recorded at their fair value on the date of issuance, determined with reference to the quoted market price of the Company’s shares on the issuance date. The resulting difference was recorded as a gain or loss on the consolidated statement of operations. During the nine months ended June 30, 2015, the Company recorded $84,842 (2014: $Nil) in respect of net gains on these conversion of the Debentures. This amount is included in financing and related charges and adjustments on the consolidated statement of operations.

Effective March 26, 2015 and upon a change in triggering events, the embedded conversion option is no longer required to be bifurcated and conversion accounting has been applied to all conversions subsequent to the change in triggering events.

Embedded conversion options and warrants

At September 30, 2014, the Company had outstanding embedded conversion options associated with the Senior Convertible Debentures and outstanding warrants being accounted for as derivative liabilities.

These derivative financial instruments arise as a result of applying ASC 815 Derivatives and Hedging (“ASC 815”), which requires the Company to make a determination whether an equity-linked financial instrument, or embedded feature, is indexed to the entity’s own stock. This guidance applies to any freestanding financial instrument or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own stock.

During the year ended September 30, 2014, the Company issued debentures with fixed price embedded conversion features and, subsequent to certain amendments as discussed above, the Company did not, at the date of issuance of these instruments, have a sufficient number of authorized and available shares of common stock to fully settle the conversion feature of such instruments if exercised. As such, the Company was required to account for these instruments as derivative financial instruments. On the amendment date of the related convertible debentures, the Company recorded a debt discount to the extent of the fair value of the embedded conversion features required to be accounted for as liabilities under ASC 815.

F-13

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 10

Note 5 Non-interest Bearing Liabilities – (cont’d)

Embedded conversion options and warrants – (cont’d)

During the nine months ended June 30, 2015, the Company issued units consisting of shares of common stock and share purchase warrants and since the Company did not, at the date of issuance of these instruments, have a sufficient number of authorized and available shares of common stock to fully settle the exercise of these warrants if exercised, due to the outstanding embedded conversion features discussed above, the Company was required to account for these instruments as derivative financial instruments. On the commitment date of the related warrants, the Company allocated the proceeds from the issuance of units first to the derivative liability at its fair value, with any remaining proceeds allocated to the common stock.

On March 26, 2015, the Company received stockholder approval to approve an amendment to the Company’s articles of incorporation to increase the Company’s authorized common stock from 150,000,000 to 400,000,000 shares, which is now sufficient to fully settle all the outstanding equity contracts. Consequently, these instruments previously accounted for as liabilities under ASC 815 are no longer required to be accounted for as liabilities. Pursuant to the guidance of ASC 815, the Company reclassified the fair value of these instruments on the date of this triggering event into equity, with the change in fair value up to the date of modification being recorded on the consolidated statement of operations as other income.

During the year ended September 30, 2013, the Company issued an aggregate of 6,448,966 common stock purchase warrants that were required to be accounted for as liabilities pursuant to ASC 815 as a result of certain features embedded in those instruments. During the three months ended December 31, 2013, the Company amended the terms of these common stock purchase warrants. As of the modification date, these warrants were no longer required to be accounted for as liabilities. Pursuant to the guidance of ASC 815, the Company reclassified the fair value of these instruments on the date of modification into equity, with the change in fair value up to the date of modification being recorded on the consolidated statements of operations as other income.

As a result of the application of ASC 815, the Company has recorded these liabilities at their fair values as follows:

		June 30,			September 30,
		2015			2014
Balance, beginning of the period	$	5,456,000		$	904,000
Fair value at issuance		527,000			8,277,000
Change in fair value during the period		567,000			(2,956,000	)
Reclassification to equity upon change in triggering events		(4,482,000	)		(221,000	)
Transfer to equity upon exercise		(2,068,000	)		(548,000	)
Balance, end of the period	$	-		$	5,456,000

F-14

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 11

Note 5 Non-interest Bearing Liabilities – (cont’d)

Embedded conversion options and warrants – (cont’d)

The embedded conversion features and warrants accounted for as derivative financial instruments have no observable market and the Company estimated their fair values at their reclassification dates and September 30, 2014 using the binomial option pricing model based on the following weighted average management assumptions:

	Reclassification	September
	Date	30, 2014
Risk-free interest rate	1.47%	3.21%
Expected life (years)	24.19	29.48
Expected volatility	102.14%	100.07%
Dividend yields	0.00%	0.00%

Note 6 Capital Stock

Authorized

On March 26, 2015, the Company received stockholder approval to approve an amendment to the Company’s articles of incorporation to increase the Company’s authorized common stock from 150,000,000 to 400,000,000 shares.

Equity Transactions

On October 22, 2014, the Company entered into a Securities Purchase Agreement (the “10/14 Purchase Agreement”) with one investor for an equity investment of $500,000 at a price of $0.25 per unit. Pursuant to the terms of the 10/14 Purchase Agreement, the Company agreed to sell, and the Investor agreed to purchase, 2,000,000 shares of common stock. In addition, the Company agreed to issue an aggregate of 4,000,000 stock purchase warrants, of which 2,000,000 are exercisable at $0.30 per share and 2,000,000 are exercisable at $0.42 per share, each for a period of five years, subject to normal adjustment for stock splits, combinations, and reclassification events.

As discussed in Note 5, the warrants issued were required to be accounted for as derivative liabilities at their date of issuance, pursuant to the guidance of ASC 815. Consequently, the Company allocated the proceeds from the issuance of the units first to the warrants, at their fair value of $527,000 with an amount of $2,000 being allocated to equity at par value. The $29,000 excess of the sum of fair value and par value over the proceeds received of $500,000 was recorded as a component of financing related charges and adjustments on the statement of operations during the nine months ended June 30, 2015. The fair value of the warrants was determined based on the binomial option pricing model using the following weighted average assumptions: risk-free interest rate: 1.46%, expected life: 5 years, expected volatility: 100.21%, dividend yield: 0%.

The Company paid a finder’s fee of $50,000 in connection with the 10/14 Purchase Agreement. This amount was expensed as a component of financing related charges and adjustments during the nine months ended June 30, 2015.

F-15

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 12

Note 6 Capital Stock

Equity Transactions – (cont’d)

On February 28, 2014, the Company received $30,000 in share subscriptions in respect of the issuance of 100,000 units at $0.30 per unit. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase additional common shares at $0.75 per share for a period of five years from the date of issuance. These shares were issued during the nine months ended June 30, 2015.

On March 16, 2015, pursuant to an anti-dilution provision contained in private placement subscription agreements dated May 31, 2012, the Company adjusted the price of 2,634,447 shares of common stock from $0.50 to $0.25 per share. Consequently, the Company issued 2,634,447 shares of common stock for no additional consideration.

Common stock to be issued

Included in common stock to be issued at June 30, 2015 is an amount of $610,000 (September 30, 2014: $610,000) related to 1,000,000 of common stock issuable to a director and officer of the Company pursuant to the terms of an employment agreement with that director and officer (Note 8).

Also included in common stock to be issued at June 30, 2015 is an amount of $167,415 (September 30, 2014: Nil) related to the application of an incorrect conversion price to conversion notices received during the nine months ended June 30, 2015. These shares were issued subsequent to June 30, 2015.

F-16

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 13

Note 7 Lincoln Park Purchase Agreement

On July 5, 2013, the Company entered into a $10,000,000 purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC, (“Lincoln Park”) an Illinois limited liability company (the “Financing”) pursuant to which the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $10,000,000 in value of its shares of common stock from time to time over a 25 month period. In connection with the Financing, the Company also entered into a registration rights agreement with Lincoln Park whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) covering the shares of the Company’s common stock that may be issued to Lincoln Park under the Purchase Agreement.

The Company will determine, at its own discretion, the timing and amount of its sales of common stock, subject to certain conditions and limitations. The purchase price of the shares that may be sold to Lincoln Park under the Purchase Agreement will be based on the market price of the Company’s shares of common stock immediately preceding the time of sale without any fixed discount, provided that in no event will such shares be sold to Lincoln Park when the closing sale price is less than $0.50 per share. There are no upper limits on the per share price that Lincoln Park may pay to purchase such common stock. The purchase price will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or similar transaction occurring during the business days used to compute such price.

F-17

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 14

Note 7 Lincoln Park Purchase Agreement – (cont’d)

Pursuant to the Purchase Agreement, Lincoln Park initially purchased 250,000 shares of the Company’s common stock for $100,000. In consideration for entering into the Purchase Agreement, the Company issued to Lincoln Park 341,858 shares of common stock as a commitment fee and shall issue up to 133,409 shares pro rata, when and if, Lincoln Park purchases, at the Company’s discretion, the remaining $10,000,000 aggregate commitment. The Purchase Agreement may be terminated by the Company at any time at its discretion without any cost to the Company.

On October 23, 2013, the registration statement was declared effective by the SEC.

The Company incurred a net $73,787 in direct expenses in connection with the Purchase Agreement and registration statement. These were recorded as share issuance costs as a charge against additional paid in capital in the period incurred.

During the nine months ended June 30, 2015, the Company did not issue any shares under the Purchase Agreement. Subsequent to June 30, 2015, as of August 13, 2015, the Company issued to Lincoln Park an aggregate of 1,768,995 shares of common stock under the Purchase Agreement, including 1,750,000 shares of common stock for an aggregate purchase price of $1,375,190 and 18,995 commitment shares.

Note 8 Related Party Transactions

During the three and nine months ended June 30, 2015, the Company was charged general and administrative expenses totaling $17,196 and $49,661, respectively (2014: $412,089 and $1,022,089, respectively) in respect of directors fees and stock option based compensation charges (2014: in respect of directors fees, management bonuses and share and stock option based compensation charges) paid or accrued to directors and officers of the Company, inclusive of amounts noted below.

As at June 30, 2015, included in accounts payable and accrued liabilities was $51,222 (September 30, 2014: $28,232) owing to directors and officers of the Company for director fees and reimbursable expenses, and a former director and officer of the Company for unpaid fees.

During the year ended September 30, 2013, pursuant to an employment agreement with the President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer, and Director, of the Company, the Company:

i)	granted 2,000,000 fully vested share purchase options exercisable at $0.40 per share until July 5, 2023.
ii)	issued 4,000,000 shares of restricted common stock that vest as follows:

• 25% upon the Company starting a Phase Ib/IIb human study

• 25% upon the Company in-licensing additional assets in clinical or pre-clinical stage (vested during the year ended September 30, 2014 at a value of $610,000)

• 25% upon the Company securing additional non-dilutive equity funding in 2013 of at least $5,000,000 with a share price higher than the previous funding

• 25% upon the Company obtaining a listing on a major stock exchange

F-18

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 15

Note 9 Commitments

a) Share Purchase Warrants

A summary of the Company’s share purchase warrants outstanding is presented below:

				Weighted
				Average
				Exercise
	Number of Shares			Price
Balance, October 1, 2013	9,149,479		$	0.75
Expired	(2,700,513	)	$	0.75
Issued	68,466,666		$	0.36
Balance, September 30, 2014	74,915,632		$	0.40
Expired	(250,000	)	$	0.19
Exercised	(12,761,459	)	$	0.30
Issued	4,300,000		$	0.35
Balance, June 30, 2015	66,204,173		$	0.41

At June 30, 2015, the Company has 66,204,173 currently exercisable share purchase warrants outstanding as follows:

Number		Exercise Price	Expiry Date
6,448,966	$	0.75	July 5, 2018
500,000	$	0.75	February 14, 2019
120,000	$	1.00	February 24, 2019
21,071,874	$	0.30	March 13, 2019
33,833,333	$	0.42	March 13, 2019
180,000	$	0.31	May 31, 2019
2,000,000	$	0.30	October 22, 2019
2,000,000	$	0.42	October 22, 2019
50,000	$	0.31	May 31, 2019
66,204,173

During the nine months ended June 30, 2015, the Company issued 250,000 warrants exercisable at $0.19 per share until January 31, 2015 to a consultant of the Company pursuant to a consulting agreement dated October 24, 2014. The warrants were to vest in the event the Company entered into a license agreement or direct sales transaction as a direct result of the consultant. During the nine months ended June 30, 2015, these warrants expired unvested and unexercised. No stock-based compensation has been or will be recorded in the financial statements as none of the performance conditions for vesting were met.

F-19

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 16

Note 9 Commitments – (cont’d)

a) Share Purchase Warrants – (cont’d)

During the nine months ended June 30, 2015, the Company issued 50,000 warrants exercisable at $0.31 per share until May 31, 2019 to a consultant of the Company pursuant to a consulting agreement. The fair value of these warrants at issuance was calculated to be $6,000 based on the Black-Scholes option pricing model using the following assumptions: expected term 4.59 years, expected volatility 102.33%, expected dividend yield 0.00%, risk free interest rate 1.58% . Stock based compensation is being recorded in the financial statements over the vesting term of three years from the date of grant. The Company recognized stock based compensation expense of $2,584 and $2,584 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these warrants.

All of the 6,448,966 warrants expiring on July 5, 2018 and the 500,000 warrants expiring February 14, 2019 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $1.50 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements.

b) Stock–based Compensation Plan

In April, 2007, the Company adopted a stock option plan which provides for the granting of stock options to selected directors, officers, employees or consultants in an aggregate amount of up to 3,000,000 common shares of the Company and, in any case, the number of shares to be issued to any one individual pursuant to the exercise of options shall not exceed 10% of the issued and outstanding share capital. The granting of stock options, exercise prices and terms are determined by the Company's Board of Directors. If no vesting schedule is specified by the Board of Directors on the grant of options, then the options shall vest over a 4-year period with 25% of the granted options vesting each year commencing 1 year from the grant date.

For stockholders who have greater than 10% of the outstanding common shares of the Company and who have granted options, the exercise price of their options shall not be less than 110% of the fair of the stock on grant date. Otherwise, options granted shall have an exercise price equal to their fair value on grant date.

On February 2, 2011, the Company amended and restated the 2007 stock option plan to increase the number of options authorized to 4,000,000.

F-20

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 17

Note 9 Commitments – (cont’d)

b) Stock–based Compensation Plan – (cont’d)

A summary of the status of Company’s outstanding stock purchase options for the nine months ended June 30, 2015 and for the year ended September 30, 2014 is presented below:

				Weighted		Weighted
	Number of			Average		Average Grant
	Shares			Exercise Price		Date fair value
Outstanding at October 1, 2013	3,075,000		$	1.26
Expired	(705,000	)	$	2.70
Granted	800,000		$	0.32	$	0.25
Outstanding at September 30, 2014	3,170,000		$	0.70
Granted	3,075,000		$	0.24	$	0.19
Outstanding at June 30, 2015	6,245,000		$	0.48
Exercisable at June 30, 2015	3,058,333		$	0.45
Exercisable at September 30, 2014	2,100,000		$	0.56

At June 30, 2015, the following stock options were outstanding:

Number of Shares						Aggregate	Remaining
		Number		Exercise		Intrinsic	Contractual
Total		Vested		Price	Expiry Date	Value	Life (yrs)
100,000	(1)	100,000	$	3.67	March 30, 2016	-	0.75
270,000	(2)	-	$	3.00	February 8, 2017	-	1.61
2,000,000	(3)	2,000,000	$	0.40	July 5, 2023	100,000	8.02
300,000	(4)	-	$	0.30	May 7, 2024	45,000	8.86
500,000	(5)	-	$	0.33	May 8, 2024	60,000	8.86
2,875,000	(6)	958,333	$	0.23	April 2, 2025	632,500	9.76
200,000	(7)	-	$	0.44	June 15, 2025	2,000	9.97
6,245,000		3,058,333				839,500

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at June 30, 2015.

⁽¹⁾ As of June 30, 2015 and September 30, 2014, these options had fully vested. These options were granted during the year ended September 30, 2011 and vested over a period of one year from the date of grant. The fair value of these options at issuance was calculated to be $267,000. The Company did not recognize any stock-based compensation during the three and nine months ended June 30, 2015 (2014: $Nil and $Nil, respectively) in connection with these options.

F-21

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 18

Note 9 Commitments – (cont’d)

b) Stock–based Compensation Plan – (cont’d)

(2)	As of June 30, 2015 and September 30, 2014, none of these options had vested. The options vest upon one or more compounds: entering Phase II trial – 90,000 options; entering Phase III trial – 90,000 options; and receiving FDA approval – 90,000 options. No stock-based compensation has been recorded in the financial statements as none of the performance conditions have yet been met.
(3)	As of June 30, 2015 and September 30, 2014 these options had fully vested. These options were granted during the year ended September 30, 2013 and vested immediately upon granting. The Company did not recognize any stock-based compensation during the three and nine months ended June 30, 2015 (2014: $Nil and $Nil, respectively) in connection with these options.
(4)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a three year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $5,768 and $17,302 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.
(5)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a four year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $7,966 and $23,897 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options.
(6)	As of June 30, 2015, 958,333 of these options had vested (September 30, 2014: None of these options had vested). These options were issued during the nine months ended June 30, 2015 and vest in three equal instalments on April 2, 2015, April 2, 2016 and April 2, 2017. The Company recognized stock based compensation expense of $213,790 and $213,790 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations
(7)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the nine months ended June 30, 2015 and vest annually over a three year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $962 and $962 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

F-22

Anavex Life Sciences Corp.
Notes to the Interim Condensed Consolidated Financial Statements
June 30, 2015
Stated in US Dollars
(Unaudited) – Page 19

Note 9 Commitments – (cont’d)

b) Stock–based Compensation Plan – (cont’d)

During the nine months ended June 30, 2014, 705,000 options expired for which the Company had recognized stock-based compensation of $Nil and $Nil during the three and nine months ended June 30, 2014, respectively.

There has been no stock-based compensation recognized in the financial statements for the three and nine months ended June 30, 2015 (2014: $nil) for options that will vest upon the achievement of performance milestones because the Company has determined that satisfaction of the performance milestones was not probable. Compensation relating to stock options exercisable upon achieving performance milestones will be recognized in the period the milestones are achieved.

Note 10 Supplemental Cash Flow Information

Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statement of cash flows.

During the nine months ended June 30, 2015;

i) the Company issued 23,232,227 shares of common stock upon conversion of $5,808,057 in principal amount of convertible debentures at a conversion price of $0.25 per share;

ii) the Company reclassified an amount of $4,482,000 into equity upon modification of the terms of certain derivative instruments.

During the nine months ended June 30, 2014, the Company reclassified an amount of $221,000 into equity upon modification of the terms of certain derivative instruments.

These transactions have been excluded from the statement of cash flows.

F-23

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our anticipated future clinical and regulatory milestone events, future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the anticipated start dates, durations and completion dates of our ongoing and future clinical studies, statements regarding the anticipated designs of our future clinical studies, statements regarding our anticipated future regulatory submissions and statements regarding our anticipated future cash position. We have based these forward-looking statements largely on our current expectations and projections about future events, including the responses we expect from the U.S. Food and Drug Administration, or FDA, and other regulatory authorities and financial trends that we believe may affect our financial condition, results of operations, business strategy, preclinical and clinical trials and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions including without limitation the risks described in “Risk Factors” in Part I, Item 1A of this Quarterly Report on Form 10-Q. These risks are not exhaustive. Other sections of this Quarterly Report on Form 10-Q include additional factors which could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Except as required by applicable laws including the securities laws of the United States, we assume no obligation to update or supplement forward-looking statements.

As used in this Quarterly Report on Form 10-Q, the terms “we,” “us,” “our,” and “Anavex” mean Anavex Life Sciences Corp., unless the context clearly requires otherwise.

Our Current Business

We are a clinical stage biopharmaceutical company engaged in the development of drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, and various types of cancer. Our lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat Alzheimer’s disease and potentially other central nervous system (CNS) diseases.

In December 2014 a Phase 2a clinical trial was initiated for ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer’s disease. The randomized trial is designed to assess the safety and exploratory efficacy of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in patients with mild to moderate Alzheimer’s disease. ANAVEX 2-73 targets sigma-1 and muscarinic receptors, which have been shown in preclinical studies to reduce stress levels in the brain and to reverse the pathological hallmarks observed in Alzheimer’s disease. ANAVEX 2-73 showed no serious adverse events in a previously performed Phase 1 study. In pre-clinical studies, ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various animal models including the transgenic mouse model Tg2576.

We intend to identify and initiate discussions with potential partners in the next 12 months. Further, we may acquire or develop new intellectual property and assign, license, or otherwise transfer our intellectual property to further our goals.

Our Pipeline

2

Our pipeline includes one clinical drug candidate and several compounds in different stages of pre-clinical study.

Our proprietary SIGMACEPTOR™ Discovery Platform produced small molecule drug candidates with unique modes of action, based on our understanding of sigma receptors. Sigma receptors may be targets for therapeutics to combat many human diseases, including Alzheimer’s disease. When bound by the appropriate ligands, sigma receptors influence the functioning of multiple biochemical signals that are involved in the pathogenesis (origin or development) of disease.

Compounds that have been subjects of our research include the following:

ANAVEX 2-73

ANAVEX 2-73 may offer a disease-modifying approach in Alzheimer’s disease (AD) by using ligands that activate sigma-1 receptors.

In AD animal models, ANAVEX 2-73 has shown pharmacological, histological and behavioral evidence as a potential neuroprotective, anti-amnesic, anti-convulsive and anti-depressive therapeutic agent, due to its potent affinity to sigma-1 receptors and moderate affinities to M1-4 type muscarinic receptors. In addition, ANAVEX 2-73 has shown a potential dual mechanism which may impact both amyloid and tau pathology. In a transgenic AD animal model Tg2576 ANAVEX 2-73 induced a statistically significant neuroprotective effect against the development of oxidative stress in the mouse brain, as well as significantly increased the expression of functional and synaptic plasticity markers that is apparently amyloid-beta independent. It also statistically alleviated the learning and memory deficits developed over time in the animals, regardless of sex, both in terms of spatial working memory and long-term spatial reference memory.

Based on the results of pre-clinical testing, we initiated and completed a Phase 1 single ascending dose (SAD) clinical trial of ANAVEX 2-73 in 2011. In this Phase 1 SAD trial, the maximum tolerated single dose was defined per protocol as 55-60 mg. This dose is above the equivalent dose shown to have positive effects in mouse models of AD. There were no significant changes in laboratory or electrocardiogram (ECG) parameters. ANAVEX 2-73 was well tolerated below the 55-60 mg dose with only mild adverse events in some subjects. Observed adverse events at doses above the maximum tolerated single dose included headache and dizziness, which were moderate in severity and reversible. These side effects are often seen with drugs that target central nervous system (CNS) conditions, including AD.

The ANAVEX 2-73 Phase 1 SAD trial was conducted as a randomized, placebo-controlled study. Healthy male volunteers between the ages of 18 and 55 received single, ascending oral doses over the course of the trial. Study endpoints included safety and tolerability together with pharmacokinetic parameters. Pharmacokinetics includes the absorption and distribution of a drug, the rate at which a drug enters the blood and the duration of its effect, as well as chemical changes of the substance in the body. This study was conducted in Germany in collaboration with ABX-CRO, a clinical research organization that has conducted several Alzheimer’s disease studies, and the Technical University of Dresden.

As well, recent preclinical data validates ANAVEX 2-73 as a prospective platform drug for other neurodegenerative diseases beyond Alzheimer’s, most specifically epilepsy. The data demonstrates significant improvement in the reduction of seizures relative to three generations of epilepsy drugs currently on the market, as well as significant synergy with each of these drugs.

ANAVEX PLUS

ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept®) is a potential novel combination drug for Alzheimer’s disease. Aricept® (donepezil) is now generic. ANAVEX 2-73 showed in combination with donepezil an unexpected and clear synergic effect of memory improvement by up to 80% in animal models. A patent application was filed in the US for the combination of donepezil and ANAVEX 2-73 and if granted would give patent protection at least until 2033.

3

In a humanized calibrated cortical network computer model the unexpected pre-clinical synergy between ANAVEX 2-73 and donepezil was confirmed and ANAVEX PLUS showed an anticipated ADAS-Cog response of 7 points at 12 weeks and 5.5 points at 26 weeks, which represents more than 2x the ADAS-Cog of donepezil alone.

ANAVEX 3-71

ANAVEX 3-71, previously named AF710B is a preclinical drug candidate with a novel mechanism of action via sigma-1 receptor activation and M1 muscarinic allosteric modulation, which has shown to enhance neuroprotection and cognition in Alzheimer's disease. ANAVEX 3-71 is a CNS-penetrable mono-therapy that bridges treatment of both cognitive impairments with disease modifications. It is highly effective in very small doses against the major Alzheimer's hallmarks in transgenic (3xTg-AD) mice, including cognitive deficits, amyloid and tau pathologies, and also has beneficial effects on inflammation and mitochondrial dysfunctions. ANAVEX 3-71 indicates extensive therapeutic advantages in Alzheimer's and other protein-aggregation-related diseases given its ability to enhance neuroprotection and cognition via sigma-1 receptor activation and M1 muscarinic allosteric modulation.

ANAVEX 1-41

ANAVEX 1-41 is a sigma-1 agonist. Pre-clinical tests revealed significant neuroprotective benefits (i.e., protects nerve cells from degeneration or death) through the modulation of endoplasmic reticulum, mitochondrial and oxidative stress, which damages and destroys cells and is believed by some scientists to be a primary cause of AD. In addition, in animal models, ANAVEX 1-41 prevented the expression of caspase-3, an enzyme that plays a key role in apoptosis (programmed cell death) and loss of cells in the hippocampus, the part of the brain that regulates learning, emotion and memory. These activities involve both muscarinic and sigma-1 receptor systems through a novel mechanism of action.

ANAVEX 1037

ANAVEX 1037 is designed for the treatment of prostate cancer. It is a low molecular weight, synthetic compound exhibiting high affinity for sigma-1 receptors at nanomolar levels and moderate affinity for sigma-2 receptors and sodium channels at micromolar levels. In advanced pre-clinical studies, this compound revealed antitumor potential with no toxic side effects. It has also been shown to selectively kill human cancer cells without affecting normal/healthy cells and also to significantly suppress tumor growth in immune-deficient mice models. Scientific publications describe sigma receptor ligands positively, highlighting the possibility that these ligands may stop tumor growth and induce selective cell death in various tumor cell lines. Sigma receptors are highly expressed in different tumor cell types. Binding by appropriate sigma-1 and/or sigma-2 ligands can induce selective apoptosis. In addition, through tumor cell membrane reorganization and interactions with ion channels, our drug candidates may play an important role in inhibiting the processes of metastasis (spreading of cancer cells from the original site to other parts of the body), angiogenesis (the formation of new blood vessels) and tumor cell proliferation.

Our compounds are in the pre-clinical and clinical testing stages of development, and there is no guarantee that the activity demonstrated in pre-clinical models will be shown in human testing.

Our Target Indications

We have developed compounds with potential application to two broad categories and several specific indications. The two categories are diseases of the central nervous system, and cancer. Specific indications include:

• Alzheimer’s disease – In 2014, an estimated 5.2 million Americans are suffering from Alzheimer’s disease. The Alzheimer’s Association® reports that by 2025, 7.1 million Americans will be afflicted by the disease, a 40 percent increase from currently affected patients. Medications on the market today treat only the symptoms of AD and do not have the ability to stop its onset or its progression. There is an urgent and unmet need for both a disease modifying cure for Alzheimer’s disease as well as for better symptomatic treatments.

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• Depression - Depression is a major cause of morbidity worldwide according to the World Health Organization (WHO). Pharmaceutical treatment for depression is dominated by blockbuster brands, with the leading nine brands accounting for approximately 75% of total sales. However, the dominance of the leading brands is waning, largely due to the effects of patent expiration and generic competition. Our market research leads us to believe that the worldwide market for pharmaceutical treatment of depression exceeds $11 billion annually.

• Epilepsy - Epilepsy is a common chronic neurological disorder characterized by recurrent unprovoked seizures. These seizures are transient signs and/or symptoms of abnormal, excessive or synchronous neuronal activity in the brain. According to the Centers for Disease Control and Prevention, epilepsy affects 2.2 million Americans. Today, epilepsy is often controlled, but not cured, with medication that is categorized as older traditional anti-epileptic drugs and second generation anti epileptic drugs. Because epilepsy afflicts sufferers in different ways, there is a need for drugs used in combination with both traditional anti-epileptic drugs and second generation anti-epileptic drugs. Decision Resources, one of the world’s leading research and advisory firms for pharmaceutical and healthcare issues, finds that the epilepsy market will increase from $2.9 billion in 2011 to nearly $3.7 billion in 2016.

• Neuropathic Pain – We define neuralgia, or neuropathic pain, as pain that is not related to activation of pain receptor cells in any part of the body. Neuralgia is more difficult to treat than some other types of pain because it does not respond well to normal pain medications. Special medications have become more specific to neuralgia and typically fall under the category of membrane stabilizing drugs or antidepressants. Our market research leads us to believe the worldwide market for pharmaceutical treatment of neuropathic pain exceeds $5 billion annually.

• Malignant Melanoma - Predominantly a skin cancer, malignant melanoma can also occur in melanocytes found in the bowel and the eye. Malignant melanoma accounts for 75% of all deaths associated with skin cancer. The treatment includes surgical removal of the tumor, adjuvant treatment, chemo and immunotherapy, or radiation therapy. According to IMS Health the worldwide Malignant Melanoma market is expected to grow from about $900 million in 2012 to $4.4 billion by 2022.

• Prostate Cancer – Specific to men, prostate cancer is a form of cancer that develops in the prostate, a gland in the male reproductive system. The cancer cells may metastasize from the prostate to other parts of the body, particularly the bones and lymph nodes. Drug therapeutics for Prostate Cancer are expected to increase from $8.1 billion in 2012 to nearly $18.6 billion in 2017 according to BCC Research.

• Pancreatic Cancer - Pancreatic cancer is a malignant neoplasm of the pancreas. In the United States approximately 45,000 new cases of pancreatic cancer will be diagnosed this year and approximately 38,000 patients will die as a result of their cancer. Our market research leads us to believe that the market for the pharmaceutical treatment of pancreatic cancer will exceed $1.2 billion in 2015.

Recent Corporate Developments

Since April 1, 2015, we have experienced the following significant corporate developments:

• On June 15, 2015, our Company appointed Dr. Steffen Thomas, PhD to its Board of Directors. Dr. Thomas is a patent attorney with 15 years of experience in intellectual property, patent law and proprietary technology rights as well as significant expertise in small molecule pharmaceuticals;

• On July 22, 2015, our Company announced initial positive cognitive data for ANAVEX 2-73, the Company’s lead investigational oral treatment for Alzheimer’s targeting sigma-1 and muscarinic receptors. Cognitive EEG/ERP P300 data, a real-time physiological measure of cognitive processes with demonstrated sensitivity to Alzheimer’s disease, was presented for the first 12 of 32 mild-to-moderate Alzheimer’s patients in the ongoing ANAVEX 2-73 Phase 2a clinical trial at the Alzheimer’s Association International Conference in Washington, DC.

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• On August 10, 2015, our Company announced that it has been awarded a research grant from The Michael J. Fox Foundation for Parkinson’s Research to develop ANAVEX 2-73 for the treatment of Parkinson’s disease. The grant is expected to fully fund a preclinical study on the effect of ANAVEX 2-73 in a Parkinson’s disease animal model, which seeks to provide a solid dataset that will justify moving forward to clinical development in Parkinson’s.

• On August 12, 2015, our Company announced that it has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) for U.S. Pat. App. No. 14/205,637 related to ANAVEX 2-73. Upon issuance, the patent will provide intellectual property (IP) protection until at least 2030.

Results of Operations

Revenue

We have not earned any revenues since our inception on January 23, 2004. We do not anticipate earning any revenues until we can establish an alliance with other companies to develop, co-develop, license, acquire or market our products.

Operating Expenses

Three months ended June 30, 2015 compared to three months ended June 30, 2014

Our operating expenses for the three months ended June 30, 2015 were $1,512,960, which represents an increase of $514,127, or 51% compared to $998,833 for the three month period ended June 30, 2014. The increase was mainly attributable to an increase in research and development expenses in the current period, mostly related to our Phase 2a clinical trial for ANAVEX 2-73, which commenced in December, 2014. As well, we had an increase in stock based compensation expense related to stock options granted to our board of directors, management and consultants of the Company.

Other income (expenses)

The aggregate amount in the other income (expense) for the three month period ended June 30, 2015, amounted to $(2,727,284) as compared to $(10,257) for the comparable three month period ended June 30, 2014. The largest decrease was as a result of a financing and related charges in respect of convertible debt discount amortization in connection with associated convertible debt conversions.

Nine months ended June 30, 2015 compared to nine months ended June 30, 2014

Our operating expenses for the nine months ended June 30, 2015 were $3,141,977, which represents an increase of $812,369, or 35% compared to $2,329,608 for the nine month period ended June 30, 2014. The increase was mainly attributable to an increase in research and development expenses related to our Phase 2a clinical trial for ANAVEX 2-73, which commenced in December, 2014. We expect our research and development expenses will continue to increase over the remaining quarters in the current fiscal year as a result of this clinical trial and other auxiliary research and development activities. We continue to target potential research partners to further advance our pipeline compounds. This increase was partially offset by a decrease in salaries and wages expense over the comparative period, relating to the vesting of common stock under our President’s employment agreement pursuant to performance conditions met during that period.

Other income

The aggregate amount in the other income (expense) for the nine month period ended June 30, 2015, amounted to $(3,609,844) as compared to $660,295 for the comparable nine month period ended June 30, 2014. The increase in other expenses was mainly as a result of financing and related charges in respect of convertible debt discount amortization in connection with associated convertible debt conversions, as well as a decrease in financing related income from the comparative period relating to changes in the calculated fair value over the period of embedded conversion features and stock purchase warrants being accounted for as derivative liabilities in accordance with US GAAP.

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Liquidity and Capital Resources

Working Capital

		June 30, 2015		September 30, 2014
Current Assets	$	7,977,385	$	7,351,255
Current Liabilities		1,351,567		1,441,149
Working Capital	$	6,625,818	$	5,910,106

As of June 30, 2015, we had $7,961,331 in cash, an increase of $699,193 from September 30, 2014. The principal reason for this increase is due to cash received pursuant to the exercise of outstanding share purchase warrants. This increase was partially offset by cash used in operations and for the advancement of clinical trial work. We intend to use the majority of our capital resources to complete the next clinical trial for ANAVEX 2-73 and ANAVEX PLUS, and to perform work necessary to prepare for further clinical development.

Cash Flows

		Nine months ended June 30,
		2015			2014
Cash flows used in operating activities	$	(2,793,647	)	$	(1,742,524	)
Cash flows used in investing activities		-			(2,327	)
Cash flows from financing activities		3,492,840			9,579,458
Increase in cash during the period	$	699,193		$	7,834,607

Cash flow used in operating activities

Our cash used in operating activities for the period ended June 30, 2015 was $2,793,647 compared to $1,742,524 used in operating activities for the comparative period ended June 30, 2014. The increase in cash used in operating activities was primarily as a result of the increased research and development activities as a result of the commencement of clinical trial work.

Cash used in investing activities

Cash used in investing activities was $Nil in the current period ended June 30, 2015 compared to $2,327 in the comparative period. This is as a result of a small equipment purchase in the comparative period.

Cash flow provided by financing activities

Our cash provided by financing activities for the period ended June 30, 2015 was $3,492,840, mostly attributable to cash received from the issuance of common shares under a private placement subscription agreement and cash received pursuant to the exercise of outstanding share purchase warrants.

In the comparative period ended June 30, 2014, we had cash inflows of $9,579,458 primarily from the issuance of Senior Secured Convertible debentures in the comparative period.

Other Financing

On July 5, 2013, we entered into a Purchase Agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”), pursuant to which Lincoln Park committed to purchase up to $10,000,000 of our common stock. Concurrently with the execution of the Purchase Agreement, we issued 341,858 shares of our common stock to Lincoln Park as a fee for its commitment to purchase shares of our common stock under the Purchase Agreement. The purchase shares that may be sold pursuant to the Purchase Agreement may be sold by us to Lincoln Park at our discretion from time to time over a 25-month period commencing after the SEC declared effective the related registration statement.

There are no upper limits on the per share price that Lincoln Park may pay to purchase such common stock. Furthermore, the Company controls the timing and amount of any future sales, if any, of shares of common stock to Lincoln Park except that, pursuant to the terms of the Purchase Agreement, we would be unable to sell shares to Lincoln Park if and when the closing sale price of our common stock is below $0.50 per share, subject to adjustment as set forth in the Purchase Agreement. Lincoln Park has no right to require any sales and is obligated to purchase common stock as directed by the Company.

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Other than our rights related to the Lincoln Park financing, there can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, if and when it is needed, we will be forced to delay or scale down some or all of our research and development activities or perhaps even cease the operation of our business.

We expect that we will be able to continue to fund our operations through existing cash on hand and through equity and debt financing in the future. If we raise additional financing by issuing equity securities, our existing stockholders’ ownership will be diluted. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.

Application of Critical Accounting Policies

Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

We base our assumptions and estimates on historical experience and other sources that we believe to be reasonable at the time. Actual results may vary from our estimates due to changes in circumstances, weather, politics, global economics, mechanical problems, general business conditions and other factors. Our significant estimates are related to the valuation of warrants and options.

There are accounting policies that we believe are significant to the presentation of our financial statements. The most significant of these accounting policies relates to the accounting for our research and development expenses and stock-based compensation expense and derivative liabilities.

Research and Development Expenses

Research and developments costs are expensed as incurred. These expenses are comprised of the costs of our proprietary research and development efforts, including salaries, facilities costs, overhead costs and other related expenses as well as costs incurred in connection with third-party collaboration efforts. Milestone payments made by us to third parties are expensed when the specific milestone has been achieved.

In addition, we incur expenses in respect of the acquisition of intellectual property relating to patents and trademarks. The probability of success and length of time to developing commercial applications of the drugs subject to the acquired patents and trademarks is difficult to determine and numerous risks and uncertainties exist with respect to the timely completion of the development projects. There is no assurance the acquired patents and trademarks will ever be successfully commercialized. Due to these risks and uncertainties, we expense the acquisition of patents and trademarks.

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Stock-based Compensation

We account for all stock-based payments and awards under the fair value based method.

Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if we had paid cash instead of paying with or using equity based instruments. The cost of the stock-based payments to non-employees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term.

We account for the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. The fair value of all share purchase options are expensed over their vesting period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is recorded as an increase to share capital.

We use the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in assumptions can materially affect the fair value estimate and therefore the Black-Scholes model does not necessarily provide a reliable single measure of the fair value of our share purchase options.

Derivative Liabilities

From time to time, we may issue warrants and convertible promissory notes with embedded conversion options which, dependent on their specific contractual terms or other conditions, may be required to be accounted for as separate derivative liabilities. These liabilities are required to be measured at fair value. These instruments are then adjusted to reflect fair value at each period end. Any increase or decrease in the fair value is recorded in results of operations as change in fair value of derivative liabilities. In determining the appropriate fair value, we use the binomial pricing model because these instruments are not quoted on an active market.

Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in assumptions can materially affect the fair value estimate and therefore the binomial model does not necessarily provide a reliable single measure of the fair value of these instruments.

Recent Accounting Pronouncements

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. We are currently evaluating the impact this guidance on our financial condition, results of operations and cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. We are currently evaluating the impact this guidance on our financial condition, results of operations and cash flows.

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On May 28, 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. We are currently evaluating the impact this guidance will have on our financial condition, results of operations and cash flows.

In April 2015, the Financial Accounting Standards Board (FASB), issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. For public business entities, the final guidance will be effective for fiscal years beginning after 15 December 2015, however, early adoption (including in interim periods) is permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. An entity is also required in the year of adoption to provide certain disclosures about the change in accounting principle, including the nature of and reason for the change, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The Company plans to adopt this standard beginning February 1, 2016. We are currently evaluating the impact this guidance will have on our financial condition, results of operations and cash flows.

Other than noted above, we do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position or cash flow.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide information under this item.

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, our management, with the participation of our principal executive officer and principal financial officer, evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our principal executive officer and principal financial officer to allow timely decisions regarding required disclosure.

Based on that evaluation, our management, with the participation of our principal executive officer and principal financial officer, concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were not effective. The ineffectiveness of our disclosure controls and procedures was due to the material weaknesses disclosed in our Annual Report on Form 10-K filed on December 29, 2014.

We intend to take appropriate and reasonable steps to make the necessary improvements to remediate these deficiencies. However, due to the size and nature of our operations, segregation of all duties and job functions has not always been possible and may not be economically feasible.

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Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the fiscal quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings to which we or our subsidiary are a party or of which any of our properties is the subject. In addition, we do not know of any such proceedings contemplated by any governmental authorities.

ITEM 1A. RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide information under this item. However, current and prospective investors are encouraged to review the risks set forth in Part I, Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission on December 29, 2014.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

During the period covered by this Quarterly Report on Form 10-Q, we have not sold any equity securities that were not registered under the Securities Act of 1933 that were not previously reported in a Current Report on Form 8-K.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION.

None.

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ITEM 6. EXHIBITS.

Exhibit Number	Description
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference to an exhibit to our Registration Statement on Form SB-2 filed on January 13, 2005)
3.2	Bylaws (incorporated by reference to an exhibit to our Current Report on Form 8-K filed on September 28, 2007)
3.3	Articles of Merger filed with the Secretary of State of Nevada on January 10, 2007 and which is effective January 25, 2007 (incorporated by reference to an exhibit to our Current Report on Form 8-K filed on January 25, 2007)
3.4	Certificate of Amendment to the Articles of Incorporation (incorporated by reference to an exhibit to our Current Report on Form 8-K filed on March 30, 2015)
(4)	Instruments defining rights of security holders, including indentures
4.1	Specimen Stock Certificate (incorporated by reference to an exhibit to our Registration Statement on Form SB-2 filed on January 13, 2005)
4.2	Form of Convertible Loan Agreement (incorporated by reference to an exhibit to our Form 8-K filed on April 3, 2009)
4.3	8% Convertible Loan Agreement dated June 3, 2009 (incorporated by reference to an exhibit to our Current Report on Form 8-K filed on June 23, 2009)
4.4	8% Convertible Loan Agreement dated June 19, 2009 (incorporated by reference to an exhibit to our Current Report on Form 8-K filed on June 26, 2009)
(31)	Section 302 Certifications
31.1*	Section 302 Certification of Christopher Missling, PhD.
(32)	Section 906 Certifications
32.1*	Section 906 Certification of Christopher Missling, PhD.
(101)	XBRL
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.

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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.

ANAVEX LIFE SCIENCES CORP.

/s/Christopher Missling, PhD

Christopher Missling, PhD

Chief Executive Officer and Chief Financial Officer

(Principal Executive, Financial and Accounting Officer)

Date: August 14, 2015

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Christopher Missling, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the three months ended June 30, 2015 of Anavex Life Sciences Corp. (the “registrant”);

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. I am 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of 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: August 14, 2015

/s/Christopher Missling, PhD

Christopher Missling, PhD

Chief Executive Officer and Chief Financial Officer

(Principal Executive, Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

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

In connection with the Quarterly Report of Anavex Life Sciences Corp. (the “Company”) on Form 10-Q for the three months ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the date indicated below, 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:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 14, 2015	/s/Christopher Missling, PhD
	Christopher Missling, PhD
	Chief Executive Officer and Chief Financial Officer
	(Principal Executive, Financial and Accounting Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Schedule of Nonvested Share Activity (Details) - 9 months ended Jun. 30, 2015	USD ($)
Commitments Schedule Of Nonvested Share Activity 1	$ 100,000
Commitments Schedule Of Nonvested Share Activity 2	$ 100,000
Commitments Schedule Of Nonvested Share Activity 3	3.67
Commitments Schedule Of Nonvested Share Activity 4	$ 0
Commitments Schedule Of Nonvested Share Activity 5	0.75
Commitments Schedule Of Nonvested Share Activity 6	$ 270,000
Commitments Schedule Of Nonvested Share Activity 7	$ 0
Commitments Schedule Of Nonvested Share Activity 8	3.00
Commitments Schedule Of Nonvested Share Activity 9	$ 0
Commitments Schedule Of Nonvested Share Activity 10	1.61
Commitments Schedule Of Nonvested Share Activity 11	$ 2,000,000
Commitments Schedule Of Nonvested Share Activity 12	$ 2,000,000
Commitments Schedule Of Nonvested Share Activity 13	0.40
Commitments Schedule Of Nonvested Share Activity 14	$ 100,000
Commitments Schedule Of Nonvested Share Activity 15	8.02
Commitments Schedule Of Nonvested Share Activity 16	$ 300,000
Commitments Schedule Of Nonvested Share Activity 17	$ 0
Commitments Schedule Of Nonvested Share Activity 18	0.30
Commitments Schedule Of Nonvested Share Activity 19	$ 45,000
Commitments Schedule Of Nonvested Share Activity 20	8.86
Commitments Schedule Of Nonvested Share Activity 21	$ 500,000
Commitments Schedule Of Nonvested Share Activity 22	$ 0
Commitments Schedule Of Nonvested Share Activity 23	0.33
Commitments Schedule Of Nonvested Share Activity 24	$ 60,000
Commitments Schedule Of Nonvested Share Activity 25	8.86
Commitments Schedule Of Nonvested Share Activity 26	$ 2,875,000
Commitments Schedule Of Nonvested Share Activity 27	$ 958,333
Commitments Schedule Of Nonvested Share Activity 28	0.23
Commitments Schedule Of Nonvested Share Activity 29	$ 632,500
Commitments Schedule Of Nonvested Share Activity 30	9.76
Commitments Schedule Of Nonvested Share Activity 31	$ 200,000
Commitments Schedule Of Nonvested Share Activity 32	$ 0
Commitments Schedule Of Nonvested Share Activity 33	0.44
Commitments Schedule Of Nonvested Share Activity 34	$ 2,000
Commitments Schedule Of Nonvested Share Activity 35	9.97
Commitments Schedule Of Nonvested Share Activity 36	$ 6,245,000
Commitments Schedule Of Nonvested Share Activity 37	3,058,333
Commitments Schedule Of Nonvested Share Activity 38	$ 839,500

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Company Issuance of Share Purchase Warrants (Details)	9 Months Ended
	Jun. 30, 2015 USD ($)
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 1	$ 33,333,333
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 2	500,000
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 3	33,833,333
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 4	33,333,333
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 5	500,000
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 6	33,833,333
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 7	66,666,666
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 8	1,000,000
Non-interest Bearing Liabilities Company Issuance Of Share Purchase Warrants 9	$ 67,666,666

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Lincoln Park Purchase Agreement (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) mo $ / shares shares
Lincoln Park Purchase Agreement 1 | $	$ 10,000,000
Lincoln Park Purchase Agreement 2 | $	$ 10,000,000
Lincoln Park Purchase Agreement 3 | mo	25
Lincoln Park Purchase Agreement 4 | $ / shares	$ 0.50
Lincoln Park Purchase Agreement 5	250,000
Lincoln Park Purchase Agreement 6 | $	$ 100,000
Lincoln Park Purchase Agreement 7	341,858
Lincoln Park Purchase Agreement 8	133,409
Lincoln Park Purchase Agreement 9 | $	$ 10,000,000
Lincoln Park Purchase Agreement 10 | $	$ 73,787
Lincoln Park Purchase Agreement 11	1,768,995
Lincoln Park Purchase Agreement 12	1,750,000
Lincoln Park Purchase Agreement 13 | $	$ 1,375,190
Lincoln Park Purchase Agreement 14	18,995

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Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - 9 months ended Jun. 30, 2015	USD ($)
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 1	$ 6,448,966
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 2	0.75
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 3	$ 500,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 4	0.75
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 5	$ 120,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 6	1.00
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 7	$ 21,071,874
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 8	0.30
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 9	$ 33,833,333
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 10	0.42
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 11	$ 180,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 12	0.31
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 13	$ 2,000,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 14	0.30
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 15	$ 2,000,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 16	0.42
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 17	$ 50,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 18	0.31
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights 19	$ 66,204,173

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Equipment

9 Months Ended

Jun. 30, 2015

Equipment [Text Block]

Note 3 Equipment

				June 30, 2015
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	1,514	$	1,501

				September 30, 2014
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	768	$	2,247

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Schedule of Property, Plant and Equipment (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Equipment Schedule Of Property, Plant And Equipment 1	$ 3,015
Equipment Schedule Of Property, Plant And Equipment 2	1,514
Equipment Schedule Of Property, Plant And Equipment 3	$ 1,501
Equipment Schedule Of Property, Plant And Equipment 1		$ 3,015
Equipment Schedule Of Property, Plant And Equipment 2		768
Equipment Schedule Of Property, Plant And Equipment 3		$ 2,247

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Supplemental Cash Flow Information (Narrative) (Details) - 9 months ended Jun. 30, 2015 - USD ($)	Total
Supplemental Cash Flow Information 1	23,232,227
Supplemental Cash Flow Information 2	$ 5,808,057
Supplemental Cash Flow Information 3	$ 0.25
Supplemental Cash Flow Information 4	$ 4,482,000
Supplemental Cash Flow Information 5	$ 221,000

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Schedule of Debt (Details) - 9 months ended Jun. 30, 2015	USD ($)	CAD
Promissory Notes Payable Schedule Of Debt 1 | CAD		CAD 100,000
Promissory Notes Payable Schedule Of Debt 2	12.00%	12.00%
Promissory Notes Payable Schedule Of Debt 3	$ 0
Promissory Notes Payable Schedule Of Debt 4	$ 89,618
Promissory Notes Payable Schedule Of Debt 5 | CAD		CAD 86,677
Promissory Notes Payable Schedule Of Debt 6	12.00%	12.00%
Promissory Notes Payable Schedule Of Debt 7	$ 70,148
Promissory Notes Payable Schedule Of Debt 8	$ 77,679
Promissory Notes Payable Schedule Of Debt 9 | CAD		CAD 27,639
Promissory Notes Payable Schedule Of Debt 10	12.00%	12.00%
Promissory Notes Payable Schedule Of Debt 11	$ 22,368
Promissory Notes Payable Schedule Of Debt 12	24,768
Promissory Notes Payable Schedule Of Debt 13	92,516
Promissory Notes Payable Schedule Of Debt 14	$ 192,065

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Non-interest bearing liabilities (Details)	9 Months Ended
	Jun. 30, 2015 USD ($)
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 1	$ 57,962
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 2	263,727
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 3	0
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 4	5,456,000
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 5	57,962
Non-interest Bearing Liabilities Non-interest Bearing Liabilities 6	$ 5,719,727

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Recent Accounting Pronouncements

9 Months Ended

Jun. 30, 2015

Recent Accounting Pronouncements [Text Block]

Note 2 Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In June 2014, the FASB issued ASU No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period ("ASU 2014-12"). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

In May, 2014, the FASB and the International Accounting Standards Board (IASB) issued a converged standard on revenue recognition from contracts with customers, ASU 2014-09 (Topic 606 and IFRS 15). This standard will supersede nearly all existing revenue recognition guidance. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

In April 2015, the Financial Accounting Standards Board (FASB), issued the Accounting Standards Update 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. For public business entities, the final guidance will be effective for fiscal years beginning after December 15, 2015, however, early adoption (including in interim periods) is permitted. Upon adoption, an entity must apply the new guidance retrospectively to all prior periods presented in the financial statements. An entity is also required in the year of adoption to provide certain disclosures about the change in accounting principle, including the nature of and reason for the change, the transition method, a description of the prior-period information that has been retrospectively adjusted and the effect of the change on the financial statement line items (that is, debt issuance cost asset and the debt liability). The Company plans to adopt this standard beginning October 1, 2016. The Company is currently evaluating the impact this guidance will have on its financial condition, results of operations and cash flows.

Other than noted above, the Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

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Schedule Of Convertible Debt (Details)	9 Months Ended
	Jun. 30, 2015 USD ($)
Non-interest Bearing Liabilities Schedule Of Convertible Debt 1	$ 1,470,573
Non-interest Bearing Liabilities Schedule Of Convertible Debt 2	7,446,044
Non-interest Bearing Liabilities Schedule Of Convertible Debt 3	(1,412,611)
Non-interest Bearing Liabilities Schedule Of Convertible Debt 4	(7,182,317)
Non-interest Bearing Liabilities Schedule Of Convertible Debt 5	57,962
Non-interest Bearing Liabilities Schedule Of Convertible Debt 6	263,727
Non-interest Bearing Liabilities Schedule Of Convertible Debt 7	0
Non-interest Bearing Liabilities Schedule Of Convertible Debt 8	0
Non-interest Bearing Liabilities Schedule Of Convertible Debt 9	57,962
Non-interest Bearing Liabilities Schedule Of Convertible Debt 10	$ 263,727

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INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Current
Cash	$ 7,961,331	$ 7,262,138
Prepaid expenses	16,054	89,117
Total Current Assets	7,977,385	7,351,255
Equipment	1,501	2,247
Total Assets	7,978,886	7,353,502
Current
Accounts payable and accrued liabilities	1,259,051	1,249,084
Promissory notes payable	92,516	192,065
Total Current Liabilities	1,351,567	1,441,149
Non-interest bearing liabilities	57,962	5,719,727
Total Liabilities	1,409,529	7,160,876
STOCKHOLDERS' EQUITY
Capital stock Authorized: 400,000,000 common shares, par value $0.001 per share Issued and outstanding: 86,216,609 common shares (September 30, 2014 - 47,200,237)	86,217	47,201
Additional paid-in capital	65,030,871	52,078,750
Common stock to be issued	777,415	640,000
Accumulated deficit	(59,325,146)	(52,573,325)
Total Stockholder's Equity	6,569,357	192,626
Total Liabilities and Stockholder's Equity	$ 7,978,886	$ 7,353,502

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Jun. 30, 2015 - USD ($)	Common Stock [Member]	Common Stock Additional Paid-In Capital [Member]	Common Shares to be Issued [Member]	Accumulated Deficit [Member]	Total
Beginning Balance at Sep. 30, 2014	$ 47,201	$ 52,078,750	$ 640,000	$ (52,573,325)	$ 192,626
Beginning Balance (Shares) at Sep. 30, 2014	47,200,237
Capital stock issued pursuant to debt conversions at $0.25	$ 23,232	5,107,464	167,415		5,298,111
Capital stock issued pursuant to debt conversions at $0.25 (Shares)	23,232,227
Capital stock issued for cash - at $0.25	$ 2,000				2,000
Capital stock issued for cash - at $0.25 (Shares)	2,000,000
Capital stock issued pursuant to subscriptions received - at $0.30	$ 100	29,900	(30,000)
Capital stock issued pursuant to subscriptions received - at $0.30 (Shares)	100,000
Shares issued pursuant to the exercise of warrants - at $0.30	$ 10,270	3,070,714			3,080,984
Shares issued pursuant to the exercise of warrants - at $0.30 (Shares)	10,269,945
Shares issued pursuant to the exercise of warrants - cashless	$ 780	(780)
Shares issued pursuant to the exercise of warrants - cashless (Shares)	779,753
Shares issued pursuant to favored nations provision	$ 2,634	(2,634)
Shares issued pursuant to favored nations provision (Shares)	2,634,447
Reclassification of derivative liability		4,482,000			4,482,000
Stock based compensation		265,457			265,457
Net loss for the period				(6,751,821)	(6,751,821)
Ending Balance at Jun. 30, 2015	$ 86,217	$ 65,030,871	$ 777,415	$ (59,325,146)	$ 6,569,357
Ending Balance (Shares) at Jun. 30, 2015	86,216,609

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Schedule of Fair Value of Liabilities Activity (Details)	9 Months Ended
	Jun. 30, 2015 USD ($)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 1	$ 5,456,000
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 2	904,000
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 3	527,000
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 4	8,277,000
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 5	567,000
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 6	(2,956,000)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 7	(4,482,000)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 8	(221,000)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 9	(2,068,000)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 10	(548,000)
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 11	0
Non-interest Bearing Liabilities Schedule Of Fair Value Of Liabilities Activity 12	$ 5,456,000

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Promissory Notes Payable (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) d	CAD d
Promissory Notes Payable 1		CAD 100,000
Promissory Notes Payable 2	12.00%	12.00%
Promissory Notes Payable 3		CAD 86,677
Promissory Notes Payable 4	12.00%	12.00%
Promissory Notes Payable 5		CAD 27,639
Promissory Notes Payable 6	12.00%	12.00%
Promissory Notes Payable 7 | d	10	10
Promissory Notes Payable 8 | $	$ 100
Promissory Notes Payable 9 | $	$ 500

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Schedule of Stockholders' Equity Note, Warrants or Rights, Activity (Details) - 9 months ended Jun. 30, 2015	USD ($)
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 1	$ 9,149,479
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 2	0.75
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 3	$ (2,700,513)
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 4	0.75
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 5	$ 68,466,666
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 6	0.36
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 7	$ 74,915,632
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 8	0.40
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 9	$ (250,000)
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 10	0.19
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 11	$ (12,761,459)
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 12	0.30
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 13	$ 4,300,000
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 14	0.35
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 15	$ 66,204,173
Commitments Schedule Of Stockholders' Equity Note, Warrants Or Rights, Activity 16	0.41

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Capital Stock (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) yr $ / shares shares
Capital Stock 1	150,000,000
Capital Stock 2 | shares	400,000,000
Capital Stock 3	$ 500,000
Capital Stock 4 | $ / shares	$ 0.25
Capital Stock 5 | shares	2,000,000
Capital Stock 6	4,000,000
Capital Stock 7	2,000,000
Capital Stock 8 | $ / shares	$ 0.30
Capital Stock 9	2,000,000
Capital Stock 10 | $ / shares	$ 0.42
Capital Stock 11	$ 527,000
Capital Stock 12	2,000
Capital Stock 13	29,000
Capital Stock 14	$ 500,000
Capital Stock 15	1.46%
Capital Stock 16 | yr	5
Capital Stock 17	100.21%
Capital Stock 18	0.00%
Capital Stock 19	$ 50,000
Capital Stock 20	$ 30,000
Capital Stock 21 | shares	100,000
Capital Stock 22 | $ / shares	$ 0.30
Capital Stock 23 | $ / shares	$ 0.75
Capital Stock 24 | shares	2,634,447
Capital Stock 25	$ 0.50
Capital Stock 26 | $ / shares	$ 0.25
Capital Stock 27 | shares	2,634,447
Capital Stock 28	$ 610,000
Capital Stock 29	$ 610,000
Capital Stock 30	1,000,000
Capital Stock 31	$ 167,415
Capital Stock 32	0

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Business Description and Basis of Presentation

9 Months Ended

Jun. 30, 2015

Business Description and Basis of Presentation [Text Block]

Note 1 Business Description and Basis of Presentation

Business

Anavex Life Sciences Corp. (the “Company”) is a clinical stage biopharmaceutical company engaged in the development of drug candidates to treat Alzheimer’s disease, other central nervous system (CNS) diseases, and various types of cancer. The Company’s lead compounds ANAVEX 2-73 and ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), are being developed to treat Alzheimer’s disease and potentially other central nervous system (CNS) diseases.

In December 2014 a Phase 2a clinical trial was initiated for ANAVEX 2-73, which is being evaluated for the treatment of Alzheimer’s disease. The randomized trial is designed to assess the safety and exploratory efficacy of ANAVEX 2-73 alone as well as in combination with donepezil (ANAVEX PLUS) in patients with mild to moderate Alzheimer’s disease. ANAVEX 2-73 targets sigma-1 and muscarinic receptors, which have been shown in preclinical studies to reduce stress levels in the brain and to reverse the pathological hallmarks observed in Alzheimer’s disease. ANAVEX 2-73 showed no serious adverse events in a previously performed Phase 1 study. In pre-clinical studies, ANAVEX 2-73 demonstrated anti-amnesic and neuroprotective properties in various animal models including the transgenic mouse model Tg2576.

The Company intends to identify and initiate discussions with potential partners in the next 12 months. Further, the Company may acquire or develop new intellectual property and assign, license, or otherwise transfer our intellectual property to further its goals.

Basis of Presentation

These interim condensed consolidated financial statements have been prepared, without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained herein. These interim condensed financial statements should be read in conjunction with the audited financial statements included in its annual report on Form 10-K for the year ended September 30, 2014. The Company follows the same accounting policies in the preparation of interim reports.

Operating results for the nine months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2015.

Basic and Diluted Loss per Share

The basic loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per common share is computed similar to basic loss per common share except that the denominator is increased to include the weighted average of all potentially dilutive shares of common stock that were outstanding during the period. Additionally, the numerator is also adjusted for changes in fair value of the derivative financial instruments where it is presumed they will be share settled.

As of June 30, 2015, loss per share excludes 79,331,465 (2014 – 77,905,632) potentially dilutive common shares related to outstanding options, warrants, and convertible debentures as their effect was anti-dilutive.

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INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Sep. 30, 2014
Common Stock, Shares Authorized	400,000,000	400,000,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	86,216,609	47,200,237
Common Stock, Shares, Outstanding	86,216,609	47,200,237

XML

Equipment (Tables)

9 Months Ended

12 Months Ended

Jun. 30, 2015

Sep. 30, 2014

Schedule of Property, Plant and Equipment [Table Text Block]

				June 30, 2015
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	1,514	$	1,501

				September 30, 2014
				Accumulated
		Cost		Depreciation		Net
Computer equipment	$	3,015	$	768	$	2,247

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Aug. 14, 2015
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Trading Symbol	avxl
Entity Registrant Name	ANAVEX LIFE SCIENCES CORP.
Entity Central Index Key	0001314052
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		120,446,116
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

XML

Promissory Notes Payable (Tables)

9 Months Ended

Jun. 30, 2015

Schedule of Debt [Table Text Block]

		June 30,		September 30,
		2015		2014
Promissory note dated December 31, 2012 with a principal balance of CDN$100,000 bearing interest at 12% per annum, due on September 30, 2014	$	-	$	89,618
Promissory note dated January 9, 2013 with a principal balance of CDN$86,677, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		70,148		77,679
Promissory note dated January 9, 2013 with a principal balance of CDN$27,639, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		22,368		24,768
	$	92,516	$	192,065

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating expenses
General and administrative	$ 713,498	$ 733,818	$ 1,616,744	$ 1,941,261
Research and development	799,462	265,015	1,525,233	388,347
Total operating expenses	(1,512,960)	(998,833)	(3,141,977)	(2,329,608)
Other income (expenses)
Interest and finance income (expenses), net	1,254	(8,492)	(73,527)	(16,858)
Financing related charges and adjustments	(2,716,640)	5,420	(3,591,346)	687,409
Foreign exchange gain (loss)	(11,898)	(7,185)	55,029	(10,256)
Total other income (expenses), net	(2,727,284)	(10,257)	(3,609,844)	660,295
Net loss and comprehensive loss for the period	$ (4,240,244)	$ (1,009,090)	$ (6,751,821)	$ (1,669,313)
Loss per share
Basic	$ (0.06)	$ (0.03)	$ (0.11)	$ (0.04)
Diluted	$ (0.06)	$ (0.03)	$ (0.11)	$ (0.04)
Weighted average number of shares outstanding
Basic	76,380,219	39,260,098	61,752,000	38,218,237
Diluted	76,380,219	39,260,098	61,752,000	38,218,237

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Capital Stock

9 Months Ended

Jun. 30, 2015

Capital Stock [Text Block]

Note 6 Capital Stock

Authorized

On March 26, 2015, the Company received stockholder approval to approve an amendment to the Company’s articles of incorporation to increase the Company’s authorized common stock from 150,000,000 to 400,000,000 shares.

Equity Transactions

On October 22, 2014, the Company entered into a Securities Purchase Agreement (the “10/14 Purchase Agreement”) with one investor for an equity investment of $500,000 at a price of $0.25 per unit. Pursuant to the terms of the 10/14 Purchase Agreement, the Company agreed to sell, and the Investor agreed to purchase, 2,000,000 shares of common stock. In addition, the Company agreed to issue an aggregate of 4,000,000 stock purchase warrants, of which 2,000,000 are exercisable at $0.30 per share and 2,000,000 are exercisable at $0.42 per share, each for a period of five years, subject to normal adjustment for stock splits, combinations, and reclassification events.

As discussed in Note 5, the warrants issued were required to be accounted for as derivative liabilities at their date of issuance, pursuant to the guidance of ASC 815. Consequently, the Company allocated the proceeds from the issuance of the units first to the warrants, at their fair value of $527,000 with an amount of $2,000 being allocated to equity at par value. The $29,000 excess of the sum of fair value and par value over the proceeds received of $500,000 was recorded as a component of financing related charges and adjustments on the statement of operations during the nine months ended June 30, 2015. The fair value of the warrants was determined based on the binomial option pricing model using the following weighted average assumptions: risk-free interest rate: 1.46%, expected life: 5 years, expected volatility: 100.21%, dividend yield: 0%.

The Company paid a finder’s fee of $50,000 in connection with the 10/14 Purchase Agreement. This amount was expensed as a component of financing related charges and adjustments during the nine months ended June 30, 2015.

On February 28, 2014, the Company received $30,000 in share subscriptions in respect of the issuance of 100,000 units at $0.30 per unit. Each unit consisted of one common share and one common share purchase warrant entitling the holder to purchase additional common shares at $0.75 per share for a period of five years from the date of issuance. These shares were issued during the nine months ended June 30, 2015.

On March 16, 2015, pursuant to an anti-dilution provision contained in private placement subscription agreements dated May 31, 2012, the Company adjusted the price of 2,634,447 shares of common stock from $0.50 to $0.25 per share. Consequently, the Company issued 2,634,447 shares of common stock for no additional consideration.

Common stock to be issued

Included in common stock to be issued at June 30, 2015 is an amount of $610,000 (September 30, 2014: $610,000) related to 1,000,000 of common stock issuable to a director and officer of the Company pursuant to the terms of an employment agreement with that director and officer (Note 8).

Also included in common stock to be issued at June 30, 2015 is an amount of $167,415 (September 30, 2014: nil) related to the application of an incorrect conversion price to conversion notices received during the nine months ended June 30, 2015. These shares were issued subsequent to June 30, 2015.

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Non-interest Bearing Liabilities

9 Months Ended

Jun. 30, 2015

Non-interest Bearing Liabilities [Text Block]

Note 5 Non-interest Bearing Liabilities

Non-interest bearing liabilities consists of the following:

		June 30,		September 30,
		2015		2014
Senior Convertible Debentures	$	57,962	$	263,727
Derivative Financial Instruments		-		5,456,000
	$	57,962	$	5,719,727

Senior Convertible Debentures

		June 30,			September 30,
		2015			2014
Senior Convertible Debentures, non-interest
bearing, unsecured, due March 18, 2044		1,470,573			7,446,044
Less: Debt Discount		(1,412,611	)		(7,182,317	)
Total carrying value		57,962			263,727
Less: current portion		-			-
Long term liability	$	57,962		$	263,727

On March 13, 2014, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain purchasers (the “Purchasers”) pursuant to which the Company issued senior convertible debentures in the aggregate principal amount of $10,000,000 (the “Debentures”).

In connection with the issuance of the Debentures, the Company issued an aggregate of 67,666,666 share purchase warrants as follows:

		Non-
	Purchasers	purchasers	Total
Series A Warrants	33,333,333	500,000	33,833,333
Series B Warrants	33,333,333	500,000	33,833,333
	66,666,666	1,000,000	67,666,666

Each Series A warrant is exercisable into one common share of the Company at $0.30 per share until March 18, 2019.

Each Series B warrant is exercisable into one common share of the Company at $0.42 per share until March 18, 2019

The Debentures are unsecured, non-interest bearing and are due on March 18, 2044. The Debentures were originally convertible, in whole or in part, at the option of the holder into common shares of the Company at $0.30 per share (“the Conversion Price”). The Conversion Price of the debenture will be adjusted in the event of common stock dividend, split or consolidation. The Conversion Price was later amended to $0.25 per share, as set forth below.

Pursuant to the guidance of ASC 470-20 Debt with Conversion and Other Options, the Company allocated the proceeds from the issuance of the Debentures between the Debentures and the detachable Purchaser warrants using the relative fair value method. The fair value of the Purchaser warrants of $22,326,200 at issuance resulted in a debt discount at issuance of $5,989,900.

The Company recorded a beneficial conversion feature discount of $4,010,100 in respect of the Debentures issued, based on the intrinsic value of the conversion feature limited to a maximum of the total proceeds of the Debentures allocated to the Debentures.

The total debt discount at issuance of $10,000,000 was being amortized using the effective interest method over the term of the Debentures.

In consideration for the Debentures issued, the Company issued an aggregate of 1,000,000 share purchase warrants to non-lenders as described above. The fair value of the Non-Purchaser Warrants of $334,900, along with finder’s fees and other financing costs directly associated with the issuance of the Debentures in the amount of $788,712, was recorded as a deferred financing charge and was being amortized to income over the term of the Debentures using the effective interest method.

The fair value of the Purchaser and Non-Purchaser warrants at issuance was determined using the Black Scholes option pricing model with the following weighted average assumptions:

Risk-free interest rate	1.56%
Expected life (years)	5.00
Expected volatility	97.16%
Dividend yields	0.00%

In connection with the Purchase Agreement, the Company also entered into a registration rights agreement with each Purchaser (the “RRA”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of the shares of the Company’s common stock issuable upon conversion of the Debentures and upon exercise of the Purchaser warrants.

On July 23, 2014, the registration statement was declared effective by the SEC.

Amendment Agreements

On August 25, 2014, the Company entered into amendment agreements with each Purchaser, pursuant to which all provisions regarding liquidating damages and the accrual of damages with respect to the obligations for, and rights enforceable against, the Company, were eliminated from the RRAs. As consideration for entering into the amendment agreements and for the Purchasers agreeing to forego an amount of $459,912 in liquidating damages that had accrued and were accruing pursuant to the terms of the original RRAs, the Company agreed to adjust the fixed conversion price of the remaining outstanding debentures from $0.30 per share to $0.25 per share (the “Debenture Amendment”).

The Company assessed the guidance under ASC 470-60 Troubled Debt Restructurings and determined that this guidance did not apply to the Debenture Amendment. The Debenture Amendment was considered a substantial change in the terms of the debentures pursuant to ASC 470-50 Modifications and Extinguishments and accordingly, the Company was required to apply debt extinguishment accounting. Consequently, the Company calculated a net non-cash loss on extinguishment of debt of $8,099,137 as the premium of the aggregate fair value of the amended debentures over their aggregate carrying values of $906 immediately prior to the Debenture Amendment and the gain from the forgiveness of accrued liquidating damages of $459,912. This amount is included in other financing related charges and adjustments on the consolidated statement of operations during the year ended September 30, 2014.

The Company calculated the fair value of the amended Debentures by discounting future cash flows using rates representative of current borrowing rates for debt instruments without a conversion feature and by using the binomial option pricing model to determine the fair value of the conversion features, using the following assumptions:

Risk-free interest rate	3.13%
Expected life (years)	29.58
Expected volatility	100.71%
Dividend yields	0.00%

In addition, in accordance with debt extinguishment accounting, remaining unamortized financing costs of $1,110,568 associated with the original Debentures were immediately amortized through earnings upon entering into the amendments. This amount is also included in other financing related charges and adjustments in the consolidated statement of operations during the year ended September 30, 2014.

During the nine months ended June 30, 2015, the Company issued an aggregate of 23,232,227 shares of common stock and an additional 669,657 shares of common stock are to be issued based on a conversion price of $0.25 per share pursuant to the conversion of $5,975,471 in outstanding principal amounts due under the Debentures.

As a result of the bifurcation of the embedded conversion option subsequent to the Debenture Amendments as discussed above, for accounting purposes, two instruments were considered outstanding and, upon exercise of the contractual conversion option, extinguishment accounting was applied. Consequently, the embedded conversion feature was adjusted to fair value at the conversion date and the shares issued pursuant to conversion were recorded at their fair value on the date of issuance, determined with reference to the quoted market price of the Company’s shares on the issuance date. The resulting difference was recorded as a gain or loss on the consolidated statement of operations. During the nine months ended June 30, 2015, the Company recorded $84,842 (2014: $Nil) in respect of net gains on these conversion of the Debentures. This amount is included in financing and related charges and adjustments on the consolidated statement of operations.

Effective March 26, 2015 and upon a change in triggering events, the embedded conversion option is no longer required to be bifurcated and conversion accounting has been applied to all conversions subsequent to the change in triggering events.

Embedded conversion options and warrants

At September 30, 2014, the Company had outstanding embedded conversion options associated with the Senior Convertible Debentures and outstanding warrants being accounted for as derivative liabilities.

These derivative financial instruments arise as a result of applying ASC 815 Derivatives and Hedging (“ASC 815”), which requires the Company to make a determination whether an equity-linked financial instrument, or embedded feature, is indexed to the entity’s own stock. This guidance applies to any freestanding financial instrument or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own stock.

During the year ended September 30, 2014, the Company issued debentures with fixed price embedded conversion features and, subsequent to certain amendments as discussed above, the Company did not, at the date of issuance of these instruments, have a sufficient number of authorized and available shares of common stock to fully settle the conversion feature of such instruments if exercised. As such, the Company was required to account for these instruments as derivative financial instruments. On the amendment date of the related convertible debentures, the Company recorded a debt discount to the extent of the fair value of the embedded conversion features required to be accounted for as liabilities under ASC 815.

During the nine months ended June 30, 2015, the Company issued units consisting of shares of common stock and share purchase warrants and since the Company did not, at the date of issuance of these instruments, have a sufficient number of authorized and available shares of common stock to fully settle the exercise of these warrants if exercised, due to the outstanding embedded conversion features discussed above, the Company was required to account for these instruments as derivative financial instruments. On the commitment date of the related warrants, the Company allocated the proceeds from the issuance of units first to the derivative liability at its fair value, with any remaining proceeds allocated to the common stock.

On March 26, 2015, the Company received stockholder approval to approve an amendment to the Company’s articles of incorporation to increase the Company’s authorized common stock from 150,000,000 to 400,000,000 shares, which is now sufficient to fully settle all the outstanding equity contracts. Consequently, these instruments previously accounted for as liabilities under ASC 815 are no longer required to be accounted for as liabilities. Pursuant to the guidance of ASC 815, the Company reclassified the fair value of these instruments on the date of this triggering event into equity, with the change in fair value up to the date of modification being recorded on the consolidated statement of operations as other income.

During the year ended September 30, 2013, the Company issued an aggregate of 6,448,966 common stock purchase warrants that were required to be accounted for as liabilities pursuant to ASC 815 as a result of certain features embedded in those instruments. During the three months ended December 31, 2013, the Company amended the terms of these common stock purchase warrants. As of the modification date, these warrants were no longer required to be accounted for as liabilities. Pursuant to the guidance of ASC 815, the Company reclassified the fair value of these instruments on the date of modification into equity, with the change in fair value up to the date of modification being recorded on the consolidated statements of operations as other income.

As a result of the application of ASC 815, the Company has recorded these liabilities at their fair values as follows:

		June 30,			September 30,
		2015			2014
Balance, beginning of the period	$	5,456,000		$	904,000
Fair value at issuance		527,000			8,277,000
Change in fair value during the period		567,000			(2,956,000	)
Reclassification to equity upon change in triggering events		(4,482,000	)		(221,000	)
Transfer to equity upon exercise		(2,068,000	)		(548,000	)
Balance, end of the period	$	-		$	5,456,000

The embedded conversion features and warrants accounted for as derivative financial instruments have no observable market and the Company estimated their fair values at their reclassification dates and September 30, 2014 using the binomial option pricing model based on the following weighted average management assumptions:

	Reclassification	September
	Date	30, 2014
Risk-free interest rate	1.47%	3.21%
Expected life (years)	24.19	29.48
Expected volatility	102.14%	100.07%
Dividend yields	0.00%	0.00%

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Non-interest Bearing Liabilities (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) $ / shares shares
Non-interest Bearing Liabilities 1	$ 10,000,000
Non-interest Bearing Liabilities 2	67,666,666
Non-interest Bearing Liabilities 3 | $ / shares	$ 0.30
Non-interest Bearing Liabilities 4 | $ / shares	0.42
Non-interest Bearing Liabilities 5 | $ / shares	0.30
Non-interest Bearing Liabilities 6 | $ / shares	$ 0.25
Non-interest Bearing Liabilities 7	$ 22,326,200
Non-interest Bearing Liabilities 8	5,989,900
Non-interest Bearing Liabilities 9	4,010,100
Non-interest Bearing Liabilities 10	$ 10,000,000
Non-interest Bearing Liabilities 11	1,000,000
Non-interest Bearing Liabilities 12	$ 334,900
Non-interest Bearing Liabilities 13	788,712
Non-interest Bearing Liabilities 14	$ 459,912
Non-interest Bearing Liabilities 15 | $ / shares	$ 0.30
Non-interest Bearing Liabilities 16 | $ / shares	$ 0.25
Non-interest Bearing Liabilities 17	$ 8,099,137
Non-interest Bearing Liabilities 18	906
Non-interest Bearing Liabilities 19	459,912
Non-interest Bearing Liabilities 20	$ 1,110,568
Non-interest Bearing Liabilities 21 | shares	23,232,227
Non-interest Bearing Liabilities 22 | shares	669,657
Non-interest Bearing Liabilities 23 | $ / shares	$ 0.25
Non-interest Bearing Liabilities 24	$ 5,975,471
Non-interest Bearing Liabilities 25	84,842
Non-interest Bearing Liabilities 26	$ 0
Non-interest Bearing Liabilities 27	150,000,000
Non-interest Bearing Liabilities 28 | shares	400,000,000
Non-interest Bearing Liabilities 29	6,448,966

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Non-interest Bearing Liabilities (Tables)

9 Months Ended

Jun. 30, 2015

Non-interest bearing liabilities [Table Text Block]

		June 30,		September 30,
		2015		2014
Senior Convertible Debentures	$	57,962	$	263,727
Derivative Financial Instruments		-		5,456,000
	$	57,962	$	5,719,727

Schedule Of Convertible Debt [Table Text Block]

		June 30,			September 30,
		2015			2014
Senior Convertible Debentures, non-interest
bearing, unsecured, due March 18, 2044		1,470,573			7,446,044
Less: Debt Discount		(1,412,611	)		(7,182,317	)
Total carrying value		57,962			263,727
Less: current portion		-			-
Long term liability	$	57,962		$	263,727

Company Issuance of Share Purchase Warrants [Table Text Block]

		Non-
	Purchasers	purchasers	Total
Series A Warrants	33,333,333	500,000	33,833,333
Series B Warrants	33,333,333	500,000	33,833,333
	66,666,666	1,000,000	67,666,666

Fair Value of the Purchaser and Non-Purchaser Warrants at Issuance [Table Text Block]

Risk-free interest rate	1.56%
Expected life (years)	5.00
Expected volatility	97.16%
Dividend yields	0.00%

Schedule of Fair Value of Liabilities Activity [Table Text Block]

		June 30,			September 30,
		2015			2014
Balance, beginning of the period	$	5,456,000		$	904,000
Fair value at issuance		527,000			8,277,000
Change in fair value during the period		567,000			(2,956,000	)
Reclassification to equity upon change in triggering events		(4,482,000	)		(221,000	)
Transfer to equity upon exercise		(2,068,000	)		(548,000	)
Balance, end of the period	$	-		$	5,456,000

Amendment Agreements [Member]

Fair Value of the Purchaser and Non-Purchaser Warrants at Issuance [Table Text Block]

Risk-free interest rate	3.13%
Expected life (years)	29.58
Expected volatility	100.71%
Dividend yields	0.00%

Embedded conversion options and warrants [Member]

Fair Value of the Purchaser and Non-Purchaser Warrants at Issuance [Table Text Block]

	Reclassification	September
	Date	30, 2014
Risk-free interest rate	1.47%	3.21%
Expected life (years)	24.19	29.48
Expected volatility	102.14%	100.07%
Dividend yields	0.00%	0.00%

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Commitments

9 Months Ended

Jun. 30, 2015

Commitments [Text Block]

Note 9 Commitments

a) Share Purchase Warrants

A summary of the Company’s share purchase warrants outstanding is presented below:

				Weighted
				Average
				Exercise
	Number of Shares			Price
Balance, October 1, 2013	9,149,479		$	0.75
Expired	(2,700,513	)	$	0.75
Issued	68,466,666		$	0.36
Balance, September 30, 2014	74,915,632		$	0.40
Expired	(250,000	)	$	0.19
Exercised	(12,761,459	)	$	0.30
Issued	4,300,000		$	0.35
Balance, June 30, 2015	66,204,173		$	0.41

At June 30, 2015, the Company has 66,204,173 currently exercisable share purchase warrants outstanding as follows:

Number		Exercise Price	Expiry Date
6,448,966	$	0.75	July 5, 2018
500,000	$	0.75	February 14, 2019
120,000	$	1.00	February 24, 2019
21,071,874	$	0.30	March 13, 2019
33,833,333	$	0.42	March 13, 2019
180,000	$	0.31	May 31, 2019
2,000,000	$	0.30	October 22, 2019
2,000,000	$	0.42	October 22, 2019
50,000	$	0.31	May 31, 2019
66,204,173

During the nine months ended June 30, 2015, the Company issued 250,000 warrants exercisable at $0.19 per share until January 31, 2015 to a consultant of the Company pursuant to a consulting agreement dated October 24, 2014. The warrants were to vest in the event the Company entered into a license agreement or direct sales transaction as a direct result of the consultant. During the nine months ended June 30, 2015, these warrants expired unvested and unexercised. No stock-based compensation has been or will be recorded in the financial statements as none of the performance conditions for vesting were met.

During the nine months ended June 30, 2015, the Company issued 50,000 warrants exercisable at $0.31 per share until May 31, 2019 to a consultant of the Company pursuant to a consulting agreement. The fair value of these warrants at issuance was calculated to be $6,000 based on the Black-Scholes option pricing model using the following assumptions: expected term 4.59 years, expected volatility 102.33%, expected dividend yield 0.00%, risk free interest rate 1.58% . Stock based compensation is being recorded in the financial statements over the vesting term of three years from the date of grant. The Company recognized stock based compensation expense of $2,584 and $2,584 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these warrants.

All of the 6,448,966 warrants expiring on July 5, 2018 and the 500,000 warrants expiring February 14, 2019 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $1.50 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements.

b) Stock–based Compensation Plan

In April, 2007, the Company adopted a stock option plan which provides for the granting of stock options to selected directors, officers, employees or consultants in an aggregate amount of up to 3,000,000 common shares of the Company and, in any case, the number of shares to be issued to any one individual pursuant to the exercise of options shall not exceed 10% of the issued and outstanding share capital. The granting of stock options, exercise prices and terms are determined by the Company's Board of Directors. If no vesting schedule is specified by the Board of Directors on the grant of options, then the options shall vest over a 4 -year period with 25% of the granted options vesting each year commencing 1 year from the grant date.

For stockholders who have greater than 10% of the outstanding common shares of the Company and who have granted options, the exercise price of their options shall not be less than 110% of the fair of the stock on grant date. Otherwise, options granted shall have an exercise price equal to their fair value on grant date.

On February 2, 2011, the Company amended and restated the 2007 stock option plan to increase the number of options authorized to 4,000,000.

A summary of the status of Company’s outstanding stock purchase options for the nine months ended June 30, 2015 and for the year ended September 30, 2014 is presented below:

				Weighted		Weighted
	Number of			Average		Average Grant
	Shares			Exercise Price		Date fair value
Outstanding at October 1, 2013	3,075,000		$	1.26
Expired	(705,000	)	$	2.70
Granted	800,000		$	0.32	$	0.25
Outstanding at September 30, 2014	3,170,000		$	0.70
Granted	3,075,000		$	0.24	$	0.19
Outstanding at June 30, 2015	6,245,000		$	0.48
Exercisable at June 30, 2015	3,058,333		$	0.45
Exercisable at September 30, 2014	2,100,000		$	0.56

At June 30, 2015, the following stock options were outstanding:

Number of Shares						Aggregate	Remaining
		Number		Exercise		Intrinsic	Contractual
Total		Vested		Price	Expiry Date	Value	Life (yrs)
100,000	(1)	100,000	$	3.67	March 30, 2016	-	0.75
270,000	(2)	-	$	3.00	February 8, 2017	-	1.61
2,000,000	(3)	2,000,000	$	0.40	July 5, 2023	100,000	8.02
300,000	(4)	-	$	0.30	May 7, 2024	45,000	8.86
500,000	(5)	-	$	0.33	May 8, 2024	60,000	8.86
2,875,000	(6)	958,333	$	0.23	April 2, 2025	632,500	9.76
200,000	(7)	-	$	0.44	June 15, 2025	2,000	9.97
6,245,000		3,058,333				839,500

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at June 30, 2015.

⁽¹⁾ As of June 30, 2015 and September 30, 2014, these options had fully vested. These options were granted during the year ended September 30, 2011 and vested over a period of one year from the date of grant. The fair value of these options at issuance was calculated to be $267,000. The Company did not recognize any stock-based compensation during the three and nine months ended June 30, 2015 (2014: $Nil and $Nil, respectively) in connection with these options.

(2)	As of June 30, 2015 and September 30, 2014, none of these options had vested. The options vest upon one or more compounds: entering Phase II trial – 90,000 options; entering Phase III trial – 90,000 options; and receiving FDA approval – 90,000 options. No stock-based compensation has been recorded in the financial statements as none of the performance conditions have yet been met.
(3)	As of June 30, 2015 and September 30, 2014 these options had fully vested. These options were granted during the year ended September 30, 2013 and vested immediately upon granting. The Company did not recognize any stock-based compensation during the three and nine months ended June 30, 2015 (2014: $Nil and $Nil, respectively) in connection with these options.
(4)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a three year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $5,768 and $17,302 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.
(5)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a four year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $7,966 and $23,897 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options.
(6)	As of June 30, 2015, 958,333 of these options had vested (September 30, 2014: None of these options had vested). These options were issued during the nine months ended June 30, 2015 and vest in three equal instalments on April 2, 2015, April 2, 2016 and April 2, 2017. The Company recognized stock based compensation expense of $213,790 and $213,790 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations
(7)	As of June 30, 2015 and September 30, 2014, none of these options had vested. These options were issued during the nine months ended June 30, 2015 and vest annually over a three year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $962 and $962 during the three and nine months ended June 30, 2015, respectively (2014: $Nil and $Nil, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

During the nine months ended June 30, 2014, 705,000 options expired for which the Company had recognized stock-based compensation of $Nil and $Nil during the three and nine months ended June 30, 2014, respectively.

There has been no stock-based compensation recognized in the financial statements for the three and nine months ended June 30, 2015 (2014: $nil) for options that will vest upon the achievement of performance milestones because the Company has determined that satisfaction of the performance milestones was not probable. Compensation relating to stock options exercisable upon achieving performance milestones will be recognized in the period the milestones are achieved.

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Lincoln Park Purchase Agreement

9 Months Ended

Jun. 30, 2015

Lincoln Park Purchase Agreement [Text Block]

Note 7 Lincoln Park Purchase Agreement

On July 5, 2013, the Company entered into a $10,000,000 purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC, (“Lincoln Park”) an Illinois limited liability company (the “Financing”) pursuant to which the Company may sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $10,000,000 in value of its shares of common stock from time to time over a 25 month period. In connection with the Financing, the Company also entered into a registration rights agreement with Lincoln Park whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) covering the shares of the Company’s common stock that may be issued to Lincoln Park under the Purchase Agreement.

The Company will determine, at its own discretion, the timing and amount of its sales of common stock, subject to certain conditions and limitations. The purchase price of the shares that may be sold to Lincoln Park under the Purchase Agreement will be based on the market price of the Company’s shares of common stock immediately preceding the time of sale without any fixed discount, provided that in no event will such shares be sold to Lincoln Park when the closing sale price is less than $0.50 per share. There are no upper limits on the per share price that Lincoln Park may pay to purchase such common stock. The purchase price will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split or similar transaction occurring during the business days used to compute such price.

Pursuant to the Purchase Agreement, Lincoln Park initially purchased 250,000 shares of the Company’s common stock for $100,000. In consideration for entering into the Purchase Agreement, the Company issued to Lincoln Park 341,858 shares of common stock as a commitment fee and shall issue up to 133,409 shares pro rata, when and if, Lincoln Park purchases, at the Company’s discretion, the remaining $10,000,000 aggregate commitment. The Purchase Agreement may be terminated by the Company at any time at its discretion without any cost to the Company.

On October 23, 2013, the registration statement was declared effective by the SEC.

The Company incurred a net $73,787 in direct expenses in connection with the Purchase Agreement and registration statement. These were recorded as share issuance costs as a charge against additional paid in capital in the period incurred.

During the nine months ended June 30, 2015, the Company did not issue any shares under the Purchase Agreement. Subsequent to June 30, 2015, as of August 13, 2015, the Company issued to Lincoln Park an aggregate of 1,768,995 shares of common stock under the Purchase Agreement, including 1,750,000 shares of common stock for an aggregate purchase price of $1,375,190 and 18,995 commitment shares.

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Related Party Transactions

9 Months Ended

Jun. 30, 2015

Related Party Transactions [Text Block]

Note 8 Related Party Transactions

During the three and nine months ended June 30, 2015, the Company was charged general and administrative expenses totaling $17,196 and $49,661, respectively (2014: $412,089 and $1,022,089, respectively) in respect of directors fees and stock option based compensation charges (2014: in respect of directors fees, management bonuses and share and stock option based compensation charges) paid or accrued to directors and officers of the Company, inclusive of amounts noted below.

As at June 30, 2015, included in accounts payable and accrued liabilities was $51,222 (September 30, 2014: $28,232) owing to directors and officers of the Company for director fees and reimbursable expenses, and a former director and officer of the Company for unpaid fees.

During the year ended September 30, 2013, pursuant to an employment agreement with the President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer, and Director, of the Company, the Company:

i)	granted 2,000,000 fully vested share purchase options exercisable at $0.40 per share until July 5, 2023.
ii)	issued 4,000,000 shares of restricted common stock that vest as follows:

• 25% upon the Company starting a Phase Ib/IIb human study

• 25% upon the Company in-licensing additional assets in clinical or pre-clinical stage (vested during the year ended September 30, 2014 at a value of $610,000)

• 25% upon the Company securing additional non-dilutive equity funding in 2013 of at least $5,000,000 with a share price higher than the previous funding

• 25% upon the Company obtaining a listing on a major stock exchange

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Supplemental Cash Flow Information

9 Months Ended

Jun. 30, 2015

Supplemental Cash Flow Information [Text Block]

Note 10 Supplemental Cash Flow Information

Investing and financing activities that do not have a direct impact on current cash flows are excluded from the statement of cash flows.

During the nine months ended June 30, 2015;

i) the Company issued 23,232,227 shares of common stock upon conversion of $5,808,057 in principal amount of convertible debentures at a conversion price of $0.25 per share;

ii) the Company reclassified an amount of $4,482,000 into equity upon modification of the terms of certain derivative instruments.

During the nine months ended June 30, 2014, the Company reclassified an amount of $221,000 into equity upon modification of the terms of certain derivative instruments.

These transactions have been excluded from the statement of cash flows.

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Fair Value of the Purchaser and Non-Purchaser Warrants at Issuance (Details)	9 Months Ended
	Jun. 30, 2015
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 1	1.56%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 2	5.00
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 3	97.16%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 4	0.00%
Amendment Agreements [Member]
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 1	3.13%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 2	29.58
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 3	100.71%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 4	0.00%
Embedded conversion options and warrants [Member]
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 1	1.47%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 2	3.21%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 3	24.19
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 4	29.48
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 5	102.14%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 6	100.07%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 7	0.00%
Non-interest Bearing Liabilities Fair Value Of The Purchaser And Non-purchaser Warrants At Issuance 8	0.00%

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Business Description and Basis of Presentation (Narrative) (Details) - 9 months ended Jun. 30, 2015	mo
Business Description And Basis Of Presentation 1	12
Business Description And Basis Of Presentation 2	79,331,465
Business Description And Basis Of Presentation 3	77,905,632

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Related Party Transactions (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) $ / shares shares
Related Party Transactions 1	$ 17,196
Related Party Transactions 2	49,661
Related Party Transactions 3	412,089
Related Party Transactions 4	1,022,089
Related Party Transactions 5	51,222
Related Party Transactions 6	$ 28,232
Related Party Transactions 7	2,000,000
Related Party Transactions 8 | $ / shares	$ 0.40
Related Party Transactions 9 | shares	4,000,000
Related Party Transactions 10	25.00%
Related Party Transactions 11	25.00%
Related Party Transactions 12	$ 610,000
Related Party Transactions 13	25.00%
Related Party Transactions 14	$ 5,000,000
Related Party Transactions 15	25.00%

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INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows used in Operating Activities
Net loss for the period	$ (6,751,821)	$ (1,669,313)
Adjustments to reconcile net loss to net cash used in operations:
Amortization and depreciation	746	576
Accretion of debt discount	3,109,188	1,091
Stock-based compensation	265,457	9,589
Common shares to be issued for services	0	610,000
Amortization of deferred financing charge	0	10,047
Non-cash financing related charges	29,000	(683,000)
Change in fair value of derivative financial instruments	567,000	0
Gain on extinguishment of debt	(84,842)	(5,500)
Unrealized foreign exchange	(11,405)	(10,028)
Changes in non-cash working capital balances related to operations:
Prepaid expenses	17,099	(19,000)
Accounts payable and accrued liabilities	65,931	13,014
Net cash used in operating activities	(2,793,647)	(1,742,524)
Cash Flows used in Investing Activities
Acquisition of equipment	0	(2,327)
Net cash used in investing activities	0	(2,327)
Cash Flows provided by Financing Activities
Issuance of common shares	3,580,984	368,170
Financing fees paid	0	(788,712)
Repayment of promissory note	(88,144)	0
Proceeds from the issuance of convertible debentures	0	10,000,000
Net cash provided by financing activities	3,492,840	9,579,458
Increase in cash during the period	699,193	7,834,607
Cash, beginning of period	7,262,138	345,074
Cash, end of period	$ 7,961,331	$ 8,179,681

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Promissory Notes Payable

9 Months Ended

Jun. 30, 2015

Promissory Notes Payable [Text Block]

Note 4 Promissory Notes Payable

		June 30,		September 30,
		2015		2014
Promissory note dated December 31, 2012 with a principal balance of CDN$100,000 bearing interest at 12% per annum, due on September 30, 2014	$	-	$	89,618
Promissory note dated January 9, 2013 with a principal balance of CDN$86,677, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		70,148		77,679
Promissory note dated January 9, 2013 with a principal balance of CDN$27,639, bearing interest at 12% per annum, secured by all the present and future assets of the Company; due on demand		22,368		24,768
	$	92,516	$	192,065

On December 31, 2012, the Company issued a promissory note having a principal balance of CDN$100,000, with terms that included interest at 12% per annum and matured on June 30, 2013, in exchange for an accounts payable owing with respect to unpaid consulting fees. This note was not repaid on June 30, 2013 and the maturity date was extended to September 30, 2014. The Company repaid this note during the nine months ended June 30, 2015.

On January 9, 2013, the Company issued two (2) promissory notes (the “Secured Notes”);

a)	The Company issued a promissory note in the amount of CDN$86,677 to the former President, Secretary, Treasurer, CFO and director of the Company (the “President”) in exchange for unpaid consulting fees owing to the President. The note is bearing interest at 12% per annum and was due June 30, 2013.
b)	The Company issued a promissory note in the amount of CDN$27,639 to a former director of the Company (the “Director”) in exchange for unpaid consulting fees owing to the Director. The note is bearing interest at 12% per annum and was due June 30, 2013.

The Secured Notes are secured by a right to delay the transfer of any or all of the Company’s assets until the obligations of the Secured Notes are satisfied, including a restriction on the transfer of cash by the Company and a security interest over the intellectual property of the Company. The security interests of the Secured Notes is ranked senior to any and all security interests granted prior to the issuance of the notes and to all subsequent security interests granted, unless the holders agree in writing to other terms.

In addition, the Secured Notes contain a provision whereby if they are not repaid within 10 days of their maturity dates, they shall bear late fees in addition to interest accruing, at a rate of $100 per day per note. In an event of default by the Company, under the terms of the Secured Notes, the notes shall bear additional late fees of $500 per day per note.

Subsequent to the issuance of these Secured Notes, the former President resigned as President, Secretary, Treasurer, CFO and director of the Company and the former Director resigned as director of the Company.

The Company did not repay the notes on June 30, 2013. The Company has disputed the issuance and enforceability of the Secured Notes and should there be an attempt to enforce the Secured Notes or collection on them, the Company will consider a legal remedy. The Company has not accrued any late fees in connection with these Secured Notes as of June 30, 2015 or September 30, 2014, as the Company does not consider these amounts to be legally enforceable.

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Commitments (Narrative) (Details) - 9 months ended Jun. 30, 2015	USD ($) yr $ / shares shares
Commitments 1	66,204,173
Commitments 2 | shares	250,000
Commitments 3 | $ / shares	$ 0.19
Commitments 4 | shares	50,000
Commitments 5 | $ / shares	$ 0.31
Commitments 6	$ 6,000
Commitments 7 | yr	4.59
Commitments 8	102.33%
Commitments 9	0.00%
Commitments 10	1.58%
Commitments 11	$ 2,584
Commitments 12	2,584
Commitments 13	0
Commitments 14	$ 0
Commitments 15 | shares	6,448,966
Commitments 16 | shares	500,000
Commitments 17 | $ / shares	$ 0.001
Commitments 18	$ 1.50
Commitments 19 | shares	3,000,000
Commitments 20	10.00%
Commitments 21	4
Commitments 22	25.00%
Commitments 23 | yr	1
Commitments 24	10.00%
Commitments 25	110.00%
Commitments 26	4,000,000
Commitments 27	$ 267,000
Commitments 28	0
Commitments 29	$ 0
Commitments 30 | shares	90,000
Commitments 31 | shares	90,000
Commitments 32 | shares	90,000
Commitments 33	$ 0
Commitments 34	0
Commitments 35	5,768
Commitments 36	17,302
Commitments 37	0
Commitments 38	0
Commitments 39	7,966
Commitments 40	23,897
Commitments 41	0
Commitments 42	$ 0
Commitments 43	958,333
Commitments 44	$ 213,790
Commitments 45	213,790
Commitments 46	0
Commitments 47	0
Commitments 48	962
Commitments 49	962
Commitments 50	0
Commitments 51	$ 0
Commitments 52 | shares	705,000
Commitments 53	$ 0
Commitments 54	0
Commitments 55	$ 0

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Schedule of Share-based Compensation, Stock Options, Activity (Details) - 9 months ended Jun. 30, 2015	USD ($)
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 1	$ 3,075,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 2	1.26
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 3	$ (705,000)
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 4	2.70
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 5	$ 800,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 6	0.32
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 7	0.25
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 8	$ 3,170,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 9	0.70
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 10	$ 3,075,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 11	0.24
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 12	0.19
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 13	$ 6,245,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 14	0.48
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 15	$ 3,058,333
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 16	0.45
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 17	$ 2,100,000
Commitments Schedule Of Share-based Compensation, Stock Options, Activity 18	0.56

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Commitments (Tables)

9 Months Ended

Jun. 30, 2015

Schedule of Stockholders' Equity Note, Warrants or Rights, Activity [Table Text Block]

				Weighted
				Average
				Exercise
	Number of Shares			Price
Balance, October 1, 2013	9,149,479		$	0.75
Expired	(2,700,513	)	$	0.75
Issued	68,466,666		$	0.36
Balance, September 30, 2014	74,915,632		$	0.40
Expired	(250,000	)	$	0.19
Exercised	(12,761,459	)	$	0.30
Issued	4,300,000		$	0.35
Balance, June 30, 2015	66,204,173		$	0.41

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Number		Exercise Price	Expiry Date
6,448,966	$	0.75	July 5, 2018
500,000	$	0.75	February 14, 2019
120,000	$	1.00	February 24, 2019
21,071,874	$	0.30	March 13, 2019
33,833,333	$	0.42	March 13, 2019
180,000	$	0.31	May 31, 2019
2,000,000	$	0.30	October 22, 2019
2,000,000	$	0.42	October 22, 2019
50,000	$	0.31	May 31, 2019
66,204,173

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

				Weighted		Weighted
	Number of			Average		Average Grant
	Shares			Exercise Price		Date fair value
Outstanding at October 1, 2013	3,075,000		$	1.26
Expired	(705,000	)	$	2.70
Granted	800,000		$	0.32	$	0.25
Outstanding at September 30, 2014	3,170,000		$	0.70
Granted	3,075,000		$	0.24	$	0.19
Outstanding at June 30, 2015	6,245,000		$	0.48
Exercisable at June 30, 2015	3,058,333		$	0.45
Exercisable at September 30, 2014	2,100,000		$	0.56

Schedule of Nonvested Share Activity [Table Text Block]

Number of Shares						Aggregate	Remaining
		Number		Exercise		Intrinsic	Contractual
Total		Vested		Price	Expiry Date	Value	Life (yrs)
100,000	(1)	100,000	$	3.67	March 30, 2016	-	0.75
270,000	(2)	-	$	3.00	February 8, 2017	-	1.61
2,000,000	(3)	2,000,000	$	0.40	July 5, 2023	100,000	8.02
300,000	(4)	-	$	0.30	May 7, 2024	45,000	8.86
500,000	(5)	-	$	0.33	May 8, 2024	60,000	8.86
2,875,000	(6)	958,333	$	0.23	April 2, 2025	632,500	9.76
200,000	(7)	-	$	0.44	June 15, 2025	2,000	9.97
6,245,000		3,058,333				839,500