0001318482-17-000007.txt : 20171114 0001318482-17-000007.hdr.sgml : 20171114 20171114131149 ACCESSION NUMBER: 0001318482-17-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 62 CONFORMED PERIOD OF REPORT: 20170930 FILED AS OF DATE: 20171114 DATE AS OF CHANGE: 20171114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHOAL GAMES LTD. CENTRAL INDEX KEY: 0001318482 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 000000000 STATE OF INCORPORATION: 1A FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-120120-01 FILM NUMBER: 171200078 BUSINESS ADDRESS: STREET 1: HANSA BANK BUILDING STREET 2: GROUND FLOOR, LANDSOME ROAD CITY: THE VALLEY STATE: 1A ZIP: AI2640 BUSINESS PHONE: 6046940300 MAIL ADDRESS: STREET 1: HANSA BANK BUILDING STREET 2: GROUND FLOOR, LANDSOME ROAD CITY: THE VALLEY STATE: 1A ZIP: AI2640 FORMER COMPANY: FORMER CONFORMED NAME: BINGO.COM LTD. DATE OF NAME CHANGE: 20050222 10-Q 1 sglq317.htm SHOAL GAMES LTD. FORM 10-Q Q3 2017

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 September 30, 2017

[    ]      [    ]     TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE EXCHANGE ACT
                        For the transition period from _____________ to ____________

Commission File Number:  333-120120-01

        SHOAL GAMES LTD. 

(Exact name of small business issuer as specified in its charter)

 

ANGUILLA 

 

98-0206369

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

Hansa Bank Building, Ground Floor, Landsome Road

AI-2640, The Valley, Anguilla, B.W.I

(Address of principal executive offices) 

 

(888) 374-2163

(Issuer's telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

                                                                                            Yes [ X ]      No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  [ ]                                                    Accelerated filer                 [  ]

Non-accelerated filer    [ ]                                                   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 [     ]      No [ X ]

APPLICABLE ONLY TO CORPORATE ISSUERS The number of outstanding shares of the Issuer's common stock, no par value per share, was 65,048,592 as of November 14, 2017.

 

 

SHOAL GAMES LTD.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED SEPTEMBER 30, 2017

 

TABLE OF CONTENTS

PAGE
PART I - FINANCIAL INFORMATION 2
ITEM 1. Financial Statements   2
Consolidated Balance Sheets 2
Consolidated Statements of Operations and Comprehensive Loss  3
Consolidated Statements of Stockholders' Equity  4
Consolidated Statements of Cash Flows 5
Notes to the Consolidated Financial Statements 6
ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 21
ITEM 4T.  Controls and Procedures. 26
PART II - OTHER INFORMATION 27
ITEM 1. Legal Proceedings  27
ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds 27
ITEM 3. Defaults Upon Senior Securities  27
ITEM 4. Submission of Matters to a Vote of Security Holders 27
ITEM 5. Other Information  28
ITEM 6. Exhibits and reports on Form 8-K 29
EXHIBITS 29
SIGNATURES 31
CERTIFICATIONS 32
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002. 34

Page 1

PART I - FINANCIAL INFORMATION

ITEM 1.                      Financial Statements.

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

Consolidated Balance Sheets

(Unaudited)

As at

 

September 30, 2017

 

 

December 31, 2016

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

   Cash

$

818,085

 

$

60,190

   Accounts receivable less allowance for doubtful

   accounts $27,666 (December 31, 2016 - $27,666)

   (Note 3)

 

16,466

 

 

17,194

   Prepaid expenses (Note 4)

 

34,113

 

 

33,494

Total Current Assets

 

868,664

 

 

110,878

 

 

 

 

 

 

Equipment, net

 

11,173

 

 

10,148

 

 

 

 

 

 

Security deposits

 

-

 

 

8,067

 

 

 

 

 

 

Deferred tax asset, less valuation allowance of $15,959 (December 31, 2016 - $15,017) (Note 9)

 

 

 

 

 

 

 

 

 

Total Assets

$

879,837

 

$

129,093

 

 

 

 

 

 

Liabilities and Stockholders' Equity (Deficiency)

 

 

 

 

 

Current liabilities:

 

 

 

 

 

   Accounts payable

$

21,671

 

$

3,667

   Accrued liabilities

 

89,502

 

 

87,959

   Accounts payable and accrued liabilities - related

   party (Note 10)

 

11,276

 

 

5,356

   Derivative liability - warrants (Note 7)         

 

98,615

 

 

-

Total Current Liabilities

 

221,064

 

 

96,982

 

 

 

 

 

 

   Promissory notes (Note 6)

 

480,203

 

 

347,698

 

 

 

 

 

 

Total Liabilities

 

701,267

 

 

444,680

 

 

 

 

 

 

Commitments (Note 8)

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity (Deficiency) (Note 7):

 

 

 

 

 

   Common stock, no par value, unlimited shares

   authorized, 64,919,992 shares issued and

   outstanding

   (December 31, 2016 - 59,708,318)

 

23,003,127

 

 

21,223,271

   Accumulated deficit

 

(22,849,137)

 

 

(21,563,438)

   Accumulated other comprehensive income:

     Foreign currency translation adjustment

 

24,580

 

 

24,580

Total Stockholders' Equity (Deficiency)

 

178,570

 

 

(315,587)

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity (Deficiency)

$

879,837

 

$

129,093

             

See accompanying notes to the consolidated financial statements.

Page 2

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

Consolidated Statements of Operations and Comprehensive Loss

For Periods Ended September 30, 2017 and 2016

(Unaudited)

 

 

Nine Months ended September 30, 2017

 

Nine Months ended September 30, 2016

 

Three Months ended September 30, 2017

 

Three Months ended September 30, 2016

 

 

 

 

 

 

 

 

 

Total revenue

$

74,888

$

241,138

$

18,853

$

52,758

 

 

 

 

 

 

 

 

 

Cost of sales:

 

 

 

 

 

 

 

 

   Game development amortization (Note 5)

 

-

 

361,510

 

-

 

120,503

Total cost of sales

 

-

 

361,510

 

-

 

120,503

 

 

 

 

 

 

 

 

 

Gross profit (loss)

 

74,888

 

(120,372)

 

18,853

 

(67,745)

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

   Depreciation and amortization

 

2,615

 

1,501

 

965

 

501

   Directors fees

 

2,500

 

6,000

 

1,000

 

2,000

   General and administrative

 

218,057

 

186,205

 

96,369

 

65,601

   Promissory note accretion and interest

   (Note 6)

 

62,021

 

-

 

22,110

 

-

   Salaries, wages, consultants and benefits

 

339,827

 

316,646

 

121,697

 

97,626

   Selling and marketing

 

151,483

 

394,389

 

71,351

 

26,044

   Games development (Note 5)

 

605,905

 

855,985

 

194,594

 

387,068

Total operating expenses

 

1,382,408

 

1,760,726

 

508,086

 

578,840

 

 

 

 

 

 

 

 

 

Loss before other income (expense) and income taxes

 

(1,307,520)

 

(1,881,098)

 

(489,233)

 

(646,585)

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

   Gain on derivative liability - warrants (Note 7)

 

24,669

 

-

 

24,669

 

-

   Foreign exchange (loss) income

 

(2,861)

 

(31,192)

 

1,849

 

(10,759)

   Interest and other income

 

13

 

139

 

5

 

38

   Loss on prepaid development (Note 4)

 

-

 

(498,791)

 

-

 

(498,791)

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

(1,285,699)

 

(2,410,942)

 

(462,710)

 

(1,156,097)

 

 

 

 

 

 

 

 

 

Income tax (recovery) expense

 

-

 

(8)

 

-

 

1

Net loss for the period

 

(1,285,699)

 

(2,410,934)

 

(462,710)

 

(1,156,098)

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

Comprehensive loss for the period

$

(1,285,699)

$

(2,410,934)

$

(462,710)

$

(1,156,098)

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

$

(0.02)

$

(0.04)

$

(0.01)

$

(0.02)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic

 

60,621,170

 

57,737,834

 

62,063,832

 

59,535,637

Weighted average common shares outstanding, diluted

 

60,621,170

 

57,737,834

 

62,063,832

 

59,535,637

See accompanying notes to the consolidated financial statements.

Page 3

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

Consolidated Statements of Stockholders' Equity (Deficiency)

For the period ended September 30, 2017

(Unaudited)

 
 

Common stock

 
Accumulated Other Comprehensive income
 
 

Shares

Amount Accumulated Deficit Foreign currency translation adjustment Total Stockholders' Deficiency

Balance, December 31, 2016

59,708,318

$21,223,271

$(21,563,438)

$ 24,580

($315,587)

 

 

 

 

 

 

   Discount on promissory note

-

23,461

-

-

23,461

 

 

 

 

 

 

   Gain on extinguishment and

   reissuance of promissory notes

   with related parties

-

94,191

-

-

94,191

 

 

 

 

 

 

   Private placement, net of

   issuance expenses

5,211,674

1,785,488

-

-

1,785,488

 

 

 

 

 

 

   Derivative liability - warrants

-

(123,284)

-

-

(123,284)

 

 

 

 

 

 

   Net loss

-

-

(1,285,699)

-

(1,285,699)

Balance, September 30, 2017

64,919,992

$23,003,127

$ (22,849,137)

$ 24,580

$178,570

             

   

   

See accompanying notes to the consolidated financial statements.

Page 4

SHOAL GAMES LTD. and Subsidiaries

 

(Expressed in United States Dollars)

Consolidated Statements of Cash Flows

For the nine month period ended September 30, 2017 and 2016

(Unaudited)

 

 

 

2017

 

2016

Cash flows from operating activities:

 

 

 

 

 

   Net loss

 

$

(1,285,699)

$

(2,410,934)

   Adjustments to reconcile net loss to net cash

   used in operating activities:

 

 

 

 

 

      Depreciation and amortization

 

 

2,615

 

1,501

      Game development amortization

 

 

-

 

361,510

     Accretion of promissory note

 

 

62,021

 

-

     Gain on derivative liability - warrants

 

 

(24,669)

 

-

 

 

 

 

 

 

   Changes in operating assets and liabilities:

 

 

 

 

 

      Accounts receivable

 

 

728

 

15,551

      Prepaid expenses

 

 

(619)

 

(40,894)

      Security deposits

 

 

8,067

 

(524)

      Accounts payable and accrued liabilities

 

 

25,467

 

51,240

   Net cash used in operating activities

 

 

(1,212,089)

 

(2,022,550)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Acquisition of equipment

 

 

(3,640)

 

(5,104)

   Net cash used in investing activities

 

 

(3,640)

 

(5,104)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Proceeds from Private placement, net of issuance costs

 

 

1,785,488

 

1,513,354

   Promissory note

 

 

188,136

 

-

   Proceeds from shareholder loan

 

 

-

 

26,631

   Net cash provided by financing activities

 

 

1,973,624

 

1,539,985

 

 

 

 

 

 

Change in cash

 

 

757,895

 

(487,669)

 

 

 

 

 

 

Cash, beginning of period

 

 

60,190

 

570,086

Cash, end of period

 

$

818,085

$

82,417

 

 

 

 

 

 

Supplementary information:

 

 

 

 

 

   Interest paid

 

$

-

$

  - 

   Income taxes paid

 

$

-

$

-

Non-cash financing activity - Extinguishment of promissory notes

 

$

94,191

$

-

Non-cash financing activity - Discount on related party loans

 

$

23,461

$

-

Non-cash investing activity

 

$

-

$

-

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.
 

 Page 5

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

1.         Basis of Presentation:

The accompanying unaudited financial statements have been prepared by Shoal Games Ltd. ("the Company") in conformity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.  In the opinion of management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.  All adjustments are of a normal recurring nature, except as otherwise noted below.  These unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2016, included in the Company's Annual Report on Form 10-K, filed March 31, 2017, with the Securities and Exchange Commission.  The results of operations for the interim periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.

Continuing operations

These unaudited interim consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from operations for the quarters ended September 30, 2017 and 2016, and has an accumulated deficit of $22,849,137 as at September 30, 2017.  This raises substantial doubt about the Company's ability to continue as a going concern.

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, and enable the timely discharge of the Company's obligations.  If management is unable to identify sources of additional cash flow in the short term, it may be required to further reduce or limit operations.

 

 Page 6

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies:

(a)     Basis of presentation:

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company's subsidiaries,

Company

Registered

% Owned

Shoal Media (Canada) Inc.

British Columbia, Canada

100%

Coral Reef Marketing Inc.

Anguilla

100%

Shoal Media Inc.

Anguilla

100%

Shoal Games (UK) Plc

United Kingdom

99%

Shoal Media (UK) Ltd.

United Kingdom

100%

Rooplay Media Ltd.

British Columbia, Canada

100%

Rooplay Media Kenya Limited

Kenya

100%

In addition, there are the following dormant subsidiaries; Bingo.com (Antigua) Inc., Bingo.com (Wyoming) Inc., and Bingo Acquisition Corp.

During the quarter ended March 31, 2017, Shoal Media UK Ltd. was incorporated under the laws of England and Wales.

During the quarter ended September 30, 2017, Rooplay Media Kenya Limited was incorporated under the laws of Kenya.

All inter-company balances and transactions have been eliminated in the consolidated financial statements.

(b)     Use of estimates:

The preparation of consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.

Significant areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable, the valuation of promissory notes and the estimated market rate of 15%, the derivative liability - warrants valuation and the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.

 Page 7

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(c)     Revenue recognition:

Trophy Bingo and Garfield's Bingo revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.

Advertising revenues, not generated in Trophy Bingo or Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.

Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.

(d)     Foreign currency:

The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency financial statements under Statement ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.

Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in net income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.

(e)   Software Development Costs:

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility and amortized the capitalized software development costs over a period of 3 years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.  The Company completed the amortization of the capitalized Trophy Bingo software development expenses on December 31, 2016.   

 Page 8

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(e)   Software Development Costs: (Continued)

If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

Total software development costs for the development of all three products; Rooplay, Garfield's Bingo and Trophy Bingo, were $5,541,179 as at September 30, 2017 (September 30, 2016 - $4,713,621).

(f)    New accounting pronouncements and changes in accounting policy:

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers and issued subsequent amendments to the initial guidance in August 2016, March 2016, April 2016, and May 2016 within ASU 2016-04, ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12, respectively. The guidance in this update supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance throughout the Codification. Additionally, this update supersedes some cost guidance included in ASC 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, assets within the scope of ASC 360, Property, Plant, and Equipment, and intangible assets, within the scope of ASC 350, Intangibles - Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in this update. The standard was to be effective for the Company as of January 1, 2017, but in August 2016, the FASB delayed the effective date of the new revenue accounting standard to January 1, 2019, and would permit early adoption as of the original effective date. Earlier adoption is not otherwise permitted for public entities. An entity can apply the revenue standard retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (simplified transition method). The Company is currently assessing the impact of this update on its consolidated financial statements. The Company has not yet selected an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

On April 1, 2016, the FASB voted to defer the effective date of ASU No. 2014-09, which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that lease contracts with customers are a scope exception. Public business entities may elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning

 Page 9

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(f)    New accounting pronouncements and changes in accounting policy: (Continued)

after December 15, 2017. We are currently assessing the impact of the guidance on our consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Management is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on the Company's financial position or results of operations.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently

 Page 10

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(f)    New accounting pronouncements and changes in accounting policy: (Continued)

evaluating the impact of ASU No. 2016-13 on its financial position, results of operations and liquidity.

In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash Flows (Topic 230)". The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU No. 2016-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU No. 2016-15 on its financial position, results of operations and liquidity.

In October 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-16, Income Taxes (Topic 740). The standard improves the accounting for income tax consequences of intra-entry transfers of assets other than inventory. This pronouncement is effective for annual reporting periods beginning after December 15, 2017. The amendments in this ASU should be applied using a modified retrospective approach. The Company is currently evaluating the impact of ASU No. 2016-16 on its financial position, results of operations and liquidity.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.  The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.  This pronouncement is effective for annual reporting periods beginning after December 15, 2017 but early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance.

There have been no other recent accounting standards, or changes in accounting standards, during the quarter ended September 30, 2017, as compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential material significance, to us.

(g)   Financial instruments:

(i)  Fair values:

The fair value of accounts receivable, accounts payable, accrued liabilities, promissory notes and accounts payable and accrued liabilities - related party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level 1 fair value measurement.

 Page 11

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

2.         Summary of significant accounting policies: (Continued)

(g)   Financial instruments: (Continued)

(i)  Fair values: (Continued)

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs. Derivative liability - warrants was measured using Level 2 inputs.

(ii)  Foreign currency risk:

The Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations.  The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.

3.    Accounts Receivable:

The accounts receivable as at September 30, 2017, is summarized as follows:

 

 

September 30, 2017

 

December 31, 2016

Accounts receivable

$

44,132

$

44,860

 

 

 

 

 

Provision for doubtful accounts

 

(27,666)

 

(27,666)

 

 

 

 

 

Net accounts receivable

$

16,466

$

17,194

The Company had bank accounts with the National Bank of Anguilla. During the year ended December 31, 2016, the National Bank of Anguilla, filed for chapter 11 protection and accordingly the Company expensed the balance on account of $27,666 as a doubtful debt during fiscal 2016.

4. Prepaid expenses

During the quarter ended June 30, 2016, the Company prepaid $863,660 for future development expenses for Trophy Bingo and Garfield's Bingo. During the quarter ended September 30, 2016, $332,125 (June 30, 2016, $32,744) was expensed. As at August 31, 2016, Roadhouse Interactive Limited, the developer of Trophy Bingo and Garfield's Bingo was placed in receivership, resulting in a loss of $498,791 on prepaid development.

The Company has other prepaid expenses of $14,888 (December 31, 2016 - $25,659) as at September 30, 2017. The Company has prepaid for future licenses fees of $19,225 (December 31, 2016 - $7,835) as at September 30, 2017.

 Page 12

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

5. Game development assets:

During the year ended December 31, 2012, the Company commenced development of a social bingo game, Trophy Bingo. During the year ended December 31, 2014, the Company soft launched Trophy Bingo. The Company ceased to capitalize the development costs and commenced the amortization of the capitalized development costs over a period of three years. As at December 31, 2016, the capitalized development costs were amortized in full.

During the year ended December 31, 2016, the Company obtained the license to develop Garfield's Bingo. The game was launched in November 2016. In addition, during the year ended December 31, 2016, the Company obtained Rooplay. The Company commenced development of the Rooplay platform. During the period ended September 30, 2017, the Company has expensed the development costs of all three products as incurred and has expensed the following development costs for its three products.

 

 

Nine Months ended September 30, 2017

 

Nine Months ended September 30, 2016

 

Three Months ended September 30, 2017

 

Three Months ended September 30, 2016

 

 

 

 

 

 

 

 

 

Opening total development costs

$

4,935,274

$

3,857,636

$

5,346,585

$

4,326,553

 

 

 

 

 

 

 

 

 

Development during the period

 

605,905

 

855,985

 

194,594

 

387,068

Closing total development costs

$

5,541,179

$

4,713,621

$

5,541,179

$

4,713,621

6.   Promissory notes:

The Company has issued unsecured promissory notes from shareholders of the Company. The notes were repayable on March 31, 2018. The interest on the notes are 2% per annum, calculated and compounded annually and paid annually.  Interest in arrears shall accrue interest. The unpaid principal amount due hereunder may be reduced to zero from time to time without affecting the validity of this note.

The promissory notes are accounted for by discounting the notes in a manner that reflects the entity's borrowing rate when interest cost is recognized in subsequent periods. The Company applied an estimated market rate of 15% to the promissory notes. In doing so, the Company used the discounted cash flow approach to value the present value of the notes. The cash flow stream from the coupon interest payments and the final principal payment were discounted at 15% to arrive at the valuations. The Company used a deemed rate of 15% as the appropriate discount rate after examining the interest rates for similar instruments issued in the same time frame for similar companies without the conversion feature. During the year ended December 31, 2016, the Company issued $400,000 promissory notes and recognized a discount on the promissory notes of $58,284 and $5,171 of interest accretion.

During the quarter ended March 31, 2017, the Company issued $188,136 promissory notes and recognized a discount on the promissory notes of $23,461. The Company recognized interest accretion of $53,698 for the nine months ended September 30, 2017 and $19,145 for the quarter ended September 30, 2017.

 Page 13

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

6.   Promissory notes: (Continued)

These notes were issued with the same terms and conditions as the promissory notes issued in the year ended December 31, 2016.

On March 31, 2017, the maturity date on the promissory notes was extended to April 1, 2020. The Company treated the change as an extinguishment and reissuance of the notes. The Company recognized a discount on the promissory notes of $94,191 from the extinguishment and reissuance of the notes.

 

 

September 30, 2017

 

December 31, 2016

Opening balance

$

347,698

$

-

 

 

 

 

 

Promissory note issued

 

188,136

 

400,000

 

 

 

 

 

Discount on promissory note

 

(23,461)

 

(58,284)

 

 

 

 

 

Gain on extinguishment and reissuance of promissory notes with related parties

 

(94,191)

 

-

 

 

 

 

 

Extinguishment of promissory notes to related parties

 

(418,181)

 

-

 

 

 

 

 

Reissuance of promissory notes to related parties

 

418,181

 

-

 

 

 

 

 

Accrued interest

 

8,323

 

811

 

 

 

 

 

Interest accretion

 

53,698

 

5,171

 

 

 

 

 

Closing balance

$

480,203

$

347,698

7.    Stockholders' Equity (Deficiency):

The holders of common stock are entitled to one vote for each share held.  There are no restrictions that limit the Company's ability to pay dividends on its common stock.  The Company has not declared any dividends since incorporation.  The Company's common stock has no par value per common stock.

(a)        Common stock issuances:

September 2017

During the quarter ended September 30, 2017, the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling $999,760 ($1,010,763 less issuance costs of $11,003). The private placement consisted of 2,887,895 units priced at $0.35 per unit. Each Unit was comprised of one common share and one share purchase warrant.  Each share purchase warrant is exercisable into one common share of the Company for 12 months following closing.  The exercise price of the warrants is $0.44 per share for the first six months following closing and $0.52 per share for the period which is 7-12 months following closing.

 Page 14

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

7.    Stockholders' Equity (Deficiency): (Continued)

(a)        Common stock issuances: (Continued)

June 2017

During the quarter ended June 30, 2017, the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling CAD$1.045 million ($790,281 less issuance costs of $4,553). The private placement consisted of 2,323,779 units priced at CAD$0.45 ($0.34) per unit. Each Unit was comprised of one common share and one share purchase warrant.  Each share purchase warrant is exercisable into one common share of the Company for 12 months following closing.  The exercise price of the warrants is Canadian $0.55 per share for the first six months following closing and Canadian $0.65 per share for the period which is 7-12 months following closing.

The warrants have an exercise price in Canadian dollars whilst the Company's functional currency is US Dollars. Therefore, in accordance with ASU 815 - Derivatives and Hedging, the warrants have a derivative liability value. This liability value has no effect on the cashflow of the Company and does not represent a cash payment of any kind.

During the quarter ended June 30, 2017, the fair value of derivative liability of $123,284 has been estimated on the date of the subscription using the Binomial Lattice pricing model. During the quarter ended September 30, 2017, there was a gain on derivative liability - warrants of $24,669 and the derivative liability - warrants value reduced to $98,615 with the following assumptions:

 

 

September 30, 2017

 

June 30,

2017

Average stock price

 

CAD$0.60

 

CAD$0.64

Expected dividend yield

 

 

Expected stock price volatility

 

32.7%

 

33%

Risk-free interest rate

 

1.51%

 

0.71%

Expected life of warrants

 

1 year

 

1 year

The average stock price is calculated on the probability weighted average price of the exercise of the warrants.

October 2017

Subsequent to the quarter ended September 30, 2017, the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling $44,797 ($45,010 less issuance costs of $213). The private placement consisted of 128,600 units priced at $0.35 per unit. Each Unit was comprised of one common share and one share purchase warrant.  Each share purchase warrant is exercisable into one common share of the Company for 12 months following closing.  The exercise price of the warrants is $0.44 per share for the first six months following closing and $0.52 per share for the period which is 7-12 months following closing.

 Page 15

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

7.    Stockholders' Equity (Deficiency): (Continued)

(b)        Stock option plans:

No options were granted or exercised during the period ended September 30, 2017. During the quarter ended September 30, 2017, 60,000 options were cancelled and expired unexercised.

 

 

Number of options

 

Weighted average exercise price

Outstanding and exercisable, December 31, 2015

 

-

$

-

 

 

 

 

 

Granted

 

1,010,000

 

0.42

Exercised

 

-

 

-

 

 

 

 

 

Outstanding, December 31, 2016

 

1,010,000

 

0.42

 

 

 

 

 

Granted

 

-

 

-

Expired

 

(130,000)

 

(0.42)

Exercised

 

-

 

-

 

 

 

 

 

Outstanding, September 30, 2017

 

880,000

 

0.42

The fair value of each option grant has been estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions:

 

 

September 30, 2017

 

December 31, 2016

Exercise price

 

-

 

CAD$0.54

Expiry date

 

-

 

December 21, 2021

Expected dividend yield

 

 

Expected stock price volatility

 

-

 

78%

Weighted average volatility

 

-

 

78%

Risk-free interest rate

 

-

 

1.9%

Expected life of options

 

-

 

5 years

Forfeiture rate

 

-

 

0%

Intrinsic value

 

$42,357

 

$0

8.   Commitments:

The Company leases office facilities in Vancouver, British Columbia, Canada, and The Valley, Anguilla, British West Indies. These office facilities are leased under operating lease agreements. The Canadian operating lease expired on December 31, 2016, but unless 30 day notice is given this lease automatically renews on a month to month basis until notice is given. The Anguillan operating lease expired on April 1, 2011 but unless 3 month's notice is given it automatically renews for a future 3 months until notice is given.

Minimum lease payments under these operating leases are approximately as follows:

 

 

 

2017

$

1,486

2018

 

-

 

 

 

Page 16

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

8.   Commitments: (Continued)

The Company paid rent expense totaling $4,895 for the quarter ended September 30, 2017 (September 30, 2016 - $7,669). 

The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. T. M. Williams. During the year ended December 31, 2014, the Company amended a previous agreement with Mr. T. M. Williams to provide for a consultancy payment of 2.5% of the monthly social bingo business with a minimum of $11,000 and a maximum of $25,000 per month.

During the year ended December 31, 2014, the Company entered into an agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of the Company for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of Pound Sterling 5,000 per month. In addition, during the year ended December 31, 2014, the Company entered into an agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of 2.5% of the monthly social bingo business with a minimum of $7,500 and a maximum of $25,000 per month.

During the year ended December 31, 2016, the Company signed a licensing agreement with Paws, Inc. for the license for Garfield's Bingo expiring on June 30, 2019. During the quarter ended June 30, 2017, the Company signed a licensing agreement with Paws, Inc. for the license of Garfield games in Rooplay expiring on December 31, 2019. During the quarter ended June 30, 2017, the Company signed a licensing agreement with Bulls Presstjanst AB for the license of Moomin games in Rooplay expiring on December 31, 2020. During the quarter ended June 30, 2017, the Company signed a licensing agreement with Mister Men Limited for the license of Mr. Men and Little Miss games in Rooplay expiring on April 15, 2020. During the quarter ended September 30, 2017, the Company signed a licensing agreement with Endemol Shine Group BV for the license of Mr. Bean Animation Series games in Rooplay expiring on September 30, 2020. Subsequent to the quarter ended September 30, 2017, the Company signed a licensing agreement with Rainbow SRL for the license of the Winx club games in Rooplay expiring on August 31, 2020. These agreements have commitments to pay royalties on the revenue of the products subject to minimum payments.

9.   Income Taxes:

Shoal Games Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company's subsidiaries incur income taxation.

Page 17

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

9.   Income Taxes: (Continued)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at September 30, 2017, and December 31, 2016, are presented below:

 

 

September 30, 2017

 

December 31, 2016

Deferred tax assets:

 

 

 

 

   Net operating loss carry forwards

$

15,959

$

15,017

 

 

 

 

 

   Valuation Allowance

 

(15,959)

 

(15,017)

 

$

$

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.

Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of deferred tax assets. 

Subsequent to the quarter ended September 30, 2017, Shoal Media (Canada) Inc., a subsidiary of Shoal Games Ltd., received the British Columbia Interactive Digital Media Tax Credit of CAD$39,919 for the year ended December 31, 2016 from the British Columbia Provincial Government. The Company recognizes the revenue from this tax credit upon receipt of funds.

10. Related Party Transactions:

The Company has a liability of $nil (December 31, 2016 - $nil) to a company owned by a current director and officer of the Company for payment of services rendered of $33,000 (September 30, 2016 - $33,000) by the current director and officer of the Company.

The Company has a liability of $804 (December 31, 2016 - $2) to a current director and officer of the Company for expenses incurred.

The Company has a liability of $nil (December 31, 2016 - $nil) to a company owned by a current director and officer of the Company for payment of services rendered of $19,638 (September 30, 2016 - $19,676) by the current director and officer of the Company.

The Company has a liability of $nil (December 31, 2016 - $nil) to a company owned by a current director and officer of the Company for payment of services rendered of $22,500 (September 30, 2016 - $22,500) by the current director and officer of the Company.

The Company has a liability of $3,000 (December 31, 2016 - $500), to independent directors of the Company for payment of services rendered. During the quarter ended September 30, 2017, the Company accrued $1,000 (September 30, 2016 - $2,000) to the independent directors in director fees.

The Company has a liability of $7,472 (December 31, 2016 - $4,852), to an officer of the Company for

Page 18

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

10. Related Party Transactions: (Continued)

payment of services rendered and expenses incurred of $23,447 (September 30, 2016 - $13,658) by the officer of the Company.

The Company has a liability of $nil (December 31, 2016 - $2), to a Company owned by a previous director of the Company for payment of consulting fees of $nil (September 30, 2016 - $4,985) by the previous director of the Company.

The Company has promissory notes totaling $597,270 (December 31, 2016, $400,811), including interest, from shareholders holding more than 10% of the Company. The interest on the notes are 2% per annum, calculated and compounded annually and paid annually.

During the quarter ended June 30, 2017, the directors and shareholders holding more than 10% of the Company's shares subscribed for 1,200,000 units totaling CAD$540,000 ($408,102) in the private placement.

The related party transactions are in the normal course of operations and were measured at the exchange amount, which is the amount of consideration established and agreed to by the related party.

11. Segmented information:

Revenue

The Company operates in one reportable business segment, the net revenue from Trophy Bingo and Garfield's Bingo and Rooplay.

The Company had the following revenue by geographical region.

 

 

Nine Months ended September 30, 2017

 

Nine Months ended September 30, 2016

 

Three Months ended September 30, 2017

 

Three Months ended September 30, 2016

Total revenue

 

 

 

 

 

 

Western Europe

$

8,127

$

29,519

$

2,216

$

5,421

Central, Eastern and Southern Europe

 

376

 

63

 

16

 

36

Nordics

 

489

 

803

 

134

 

161

North America

 

52,536

 

194,025

 

12,758

 

40,217

Other

 

13,360

 

16,728

 

3,729

 

6,923

Total revenue

$

74,888

$

241,138

$

18,853

$

52,758

 

 

 

 

 

 

 

 

 

Equipment

The Company's equipment is located as follows:

Net Book Value

 

September 30, 2017

 

December 31, 2016

 

 

 

 

 

Anguilla

$

621

$

828

Canada

 

9,635

 

8,097

United Kingdom

 

917

 

1,223

 

$

11,173

$

10,148

Page 19

SHOAL GAMES LTD. and Subsidiaries

(Expressed in United States Dollars)

 

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2017 and 2016

 

(Unaudited)

   

12.       Concentrations

Major customers

During the quarter ended September 30, 2017 and 2016, the Company sold subscriptions on its site Rooplay and sold in-app purchases on its social bingo sites, Trophy Bingo and Garfield's Bingo. There was no single player who had purchased more than 10% of the Rooplay, Trophy Bingo and Garfield's Bingo revenue. The Company is reliant on the Google App, iOS App and Amazon App Stores to provide a platform for Rooplay, Trophy Bingo and Garfield's Bingo to be played thereon.

During the quarter ended September 30, 2017 and 2016, the Company offered limited advertising. The Company is reliant on one sales customer who provides the advertising revenue.  

13.  Concentrations of Credit Risk:

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.  The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution.

The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At September 30, 2017, the Company had total cash balances of $818,085 (December 31, 2016 - $60,190) at financial institutions, where $612,699 (December 31, 2016 - $nil) is in excess of federally insured limits.

The Company has concentrations of credit risk with respect to accounts receivable, the majority of its accounts receivable are concentrated geographically in the United States amongst a small number of customers.

As of September 30, 2017, the Company had four customers, totaling $9,691 who accounted for greater than 10% of the total accounts receivable. As of December 31, 2016, the Company had four customers, totaling $13,300 who accounted for greater than 10% of the total accounts receivable.

The Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.  The Company performs credit evaluations of its customers but generally does not require collateral to secure accounts receivable.

Page 20

ITEM 2.          Management's Discussion and Analysis of Financial Condition and Results of Operations

The following Management's Discussion and Analysis or Plan of Operation contains forward-looking statements that involve risks and uncertainties, as described below.  Shoal Games Ltd.'s (the "Company", "we", or "us") actual results could differ materially from those anticipated in these forward-looking statements.  The following discussion should be read in conjunction with the unaudited interim consolidated financial statements and notes thereto included in Part I - Item 1 of this Quarterly Report, and the audited consolidated financial statements and notes thereto and the Management Discussion and Analysis or plan of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

FORWARD LOOKING STATEMENTS

All statements contained in this Quarterly Report on Form 10-Q and the documents incorporated herein by reference, as well as statements made in press releases and oral statements that may be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Readers should consider statements that include the terms "believe," "belief," "expect," "plan," "anticipate," "intend" or the like to be uncertain and forward-looking. In addition, all statements, trends, analyses and other information contained in this report relative to trends in net sales, gross margin, anticipated expense levels and liquidity and capital resources, constitute forward-looking statements. Particular attention should be paid to the facts of our limited operating history, the unpredictability of our future revenues, our need for and the availability of capital resources, the evolving nature of our business model, and the risks associated with systems development, management of growth and business expansion.  Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. All cautionary statements made herein should be read as being applicable to all forward-looking statements wherever they appear.  Readers should consider the risks more fully described in our Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission (the "SEC") and should not place undue reliance on any forward-looking statements.

Page 21

OVERVIEW

Shoal Games Ltd. (TSXV : SGW) (OTCQB : SGLDF) (www.shoalgames.com) is the parent company of a group of companies, which creates consumer mobile software products and games.  The Company is managed by an experienced team of technology entrepreneurs who have a long history in video games, enterprise software, mobile software, and Internet products. 

The primary focus of Shoal Games is the development and marketing of the Rooplay EdTech platform for children and families.  Rooplay is live exclusively on Google Play in 27 languages and 135 countries. Rooplay has no ads, no in-app purchases, no long downloads, no instant messaging, and no outbound links of any form.  These characteristics make the product a unique platform of game content that is entirely safe for children.

The games on the Rooplay platform are designed to both entertain and educate.  Children engaging with Rooplay learn technology, solve puzzles, paint pictures, practice language, learn math, and much more.  Shoal Games is developing a content system with Rooplay that builds tech literacy and encourages early learning.  The Company believes that to be able to teach children, they must first hold their attention.  Rooplay mixes entertainment with education so that long player sessions are created in a safe environment so that children have fun and are challenged in new ways with every session.  Rooplay has over 500 unique interactive games in every imaginable format. 

Shoal Games management believes that through the development of the Rooplay platform, and the production of exclusive EdTech game content that it can create a defensible position in the market as a premium provider of mobile games content for kids.  Shoal Games has a long history in games and software development and believes that its experienced team can establish Rooplay as a global provider of mobile entertainment for children.  Rooplay will generate revenue for the Company from consumer subscriptions which customers will pay to unlock the Rooplay game catalog.  Shoal Games management believes that the development of a platform system such as Rooplay will create a significant and sustainable revenue stream for the Company.

Shoal Games management is pursuing an aggressive growth strategy by approaching local partners in many regions of the world who are interested in distributing Rooplay.  Rooplay's games are not restricted to any particular region and the demand for early learning systems such as Rooplay is strong. 

With more than 6.8 billion mobile phone subscriptions in place globally the demand for mobile content systems is enormous.  Rooplay fills a particular need for families and with every additional piece of content that is added to the system the draw to Rooplay in comparison to other systems becomes stronger.  With the competition fierce between network operators for new mobile subscribers, Shoal Games' management believes that owning a content platform system such as Rooplay will create long-term value for the Company's shareholders.

Shoal Games' other mobile products include Garfield's Bingo (www.garfieldsbingo.com), the first mobile bingo game to feature a mega-brand; and Trophy Bingo (www.trophybingo.com), live across mobile platforms with over 500,000 installs.  Trophy Bingo and Garfield's Bingo are innovative free-to-play mobile games live in the Apple, Google and Amazon App Stores.  The Company has generated its main source of revenue to-date from players making in-app purchases in Trophy Bingo and Garfield's Bingo.

Effective July 2, 2015, the Company commenced trading on the TSX Venture Exchange as a tier 2 Technology Issuer under the trading symbol "SGW".  The Company also trades on the OTCQB under the trading symbol "SGLDF". 

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which except for lack of all detailed note disclosures, have been prepared in conformity with accounting principles generally accepted in the United States. The preparation of these financial statements

Page 22

requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, management evaluates these judgments and estimates, including whether there are any uncertainties as to compliance with the revenue recognition criteria described below, and recoverability of long-lived assets, as well as the assessment as to whether there are contingent assets and liabilities that should be recognized or disclosed for the consolidated financial statements to fairly present the information required to be set forth therein. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We consider the following accounting policies to be both those most important to the portrayal of our financial condition and require the most subjective judgment:

- Revenue recognition; 

- Software development

Revenue recognition:

Trophy Bingo and Garfield's Bingo revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.

Advertising revenues, not generated in Trophy Bingo and Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.

Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.

Software Development Costs: 

Software development costs incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility and is amortizing the capitalized software development costs over a period of 3 years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.  The Company completed the amortization of the capitalized Trophy Bingo software development expenses on December 31, 2016.   

If a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases in revenue that could be material.

Total software development costs for the development of all three products; Rooplay, Garfield's Bingo and Trophy Bingo, were $5,541,179 as at September 30, 2017 (September 30, 2016 - $4,713,621).

Page 23

RESULTS OF OPERATIONS

            Revenue

Total revenue, net of platform fees to Apple, Google and Amazon, for the quarter ended September 30, 2017, decreased to $18,853, a decrease of 64% from revenue of $52,758 for third quarter of 2016 and a decrease of 17% from revenue of $22,776, in the second quarter of fiscal 2017. This expected decrease in total revenue compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017, is due no marketing spend on the Company's legacy products, Trophy Bingo and Garfield's Bingo, whilst the Company continues to complete the development of Rooplay Originals (Branded EdTEch games for children and families) and expand its distribution channels.

            Sales and marketing expenses

Sales and marketing expenses were $71,351 for the quarter ended September 30, 2017, an increase over expenses of $26,044 in the third quarter of fiscal 2016 and an increase of 41% from sales and marketing expenses of $50,531 in the second quarter of fiscal 2017. This increase in sales and marketing expenses in the quarter ended September 30, 2017, compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017 was due to   larger marketing campaigns to promote Rooplay and hiring of marketing consultants to increase the exposure of Rooplay in new territories. Selling and marketing expenses principally include publishing services and user acquisition costs to acquire players.

We expect to continue to incur sales and marketing expenses to increase traffic and bring new players to the Rooplay platform in the fourth quarter of fiscal 2017 and fiscal 2018. There can be no assurances that these expenditures will result in increased traffic or significant additional revenue.

            General and administrative expenses

General and administrative expenses consist primarily of premises costs for our office, legal and professional fees, and other general corporate and office expenses. General and administrative expenses increased to $96,369 for the quarter ended September 30, 2017, an increase of 47% from costs of $65,601 for the third quarter of fiscal 2016 and an increase of 36% from costs of $71,089 in the second quarter of 2017. The increase in general and administrative expenses compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017, is due to costs incurred from the financing and the promotion of the Company to potential investors.

We expect to continue to incur general and administrative expenses to support the business, and there can be no assurances that we will be able to generate sufficient revenue to cover these expenses.

Salaries, wages, consultants and benefits

Salaries, wages, consultants and benefits increased to $121,697 for the quarter ended September 30, 2017, an increase of 25% compared to salaries, wages, consultants and benefits of $97,626 in the third quarter of fiscal 2016 and an increase of 4%, over salaries, wages, consultants and benefits of $116,537 in the second quarter of 2017. This increase compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017, is due to higher consultant charges incurred.

Depreciation and amortization

Equipment is depreciated using the declining balance method over the useful lives of the assets, ranging from three to five years. Depreciation and amortization increased to $965 during the quarter ended September 30, 2017, an increase of 93% over costs of $501 during the same quarter in the prior year and an increase of 16% over costs of $833 in the second quarter of fiscal 2017. This increase in depreciation and amortization compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017, is due to acquisitions of equipment for new employees.

Page 24

Game development and amortization

During the quarter ended March 31, 2014, the Company soft-launched Trophy Bingo on Android in selected markets. The Company had a further global release of the Andriod version in the third quarter of 2014 and the iOS version in the third quarter of 2014. The Company ceased to capitalize the development of Trophy Bingo and commenced amortizing the capitalized development costs over the life of the game. The capitalized development costs were fully amortized in the fourth quarter of fiscal 2016. Development costs during the quarter ended September 30, 2017, decreased to $194,594, a decrease of 50% compared to $387,068 during the third quarter of fiscal 2016 and amortization of $120,503 of the capitalized development costs during the third quarter of fiscal 2016 and a decrease of 1% compared to development costs of $196,816 during the second quarter of fiscal 2017. The decrease compared to the third quarter of fiscal 2016 and the second quarter of fiscal 2017, is due to lower development expenses incurred in the development of Trophy Bingo, Garfield's Bingo and Rooplay.

Loss on prepaid development

During the second quarter of fiscal 2016, the Company prepaid $863,660 in development costs. Effective August 31, 2016, Roadhouse Interactive Limited was placed in receivership. There was $498,791 in development expenses which had not been utilized. The Company immediately expensed this in the third quarter of fiscal 2016.

            Net loss and loss per share

The net loss after taxation for the quarter ended September 30, 2017, amounted to ($462,710), a loss of ($0.01) per share, compared to a net loss of ($1,156,098) or ($0.01) per share in the quarter ending September 30, 2016 and net loss of ($439,042), or ($0.01) per share in the second quarter of fiscal 2017. 

LIQUIDITY AND CAPITAL RESOURCES

We had cash of $818,085 and working capital of $746,215 before the deduction of the derivative liability - warrants and $647,600 after the deduction of the derivative liability - warrants as at September 30, 2017.  This compares to cash of $60,190 and working capital of $13,896 at December 31, 2016.

During the quarter ended September 30, 2017, we used cash of ($432,240) in operating activities compared to cash used in operating activities of ($126,625) in the same period in the prior year and compared to using cash of ($563,510) in the second quarter of 2017.

During the nine months ended September 30, 2017, we used cash of ($1,212,088) in operating activities compared to using cash in operating activities of ($2,022,500) in the same period in the prior year.

Net cash generated by financing activities was $999,760 in the quarter ended September 30, 2017, which compares to cash generated by financing activity of $26,631 in the same period in the prior year and $785,728 during the second quarter of fiscal 2017. This cash generated by financing activity is due to the cash raised from the private placement Unit offering.

During the nine months ended September 30, 2017, net cash generated by financing activities was $1,973,623 compared to net cash generated by financing activities of $1,539,985 in the same period in the prior year.

Our future capital requirements will depend on a number of factors, including costs associated with the further development of the Companies products;  the cost of marketing and player acquisition costs for the Companies products; the success and acceptance of the Companies products; plus the continuing upkeep of our Web portals www.shoalgames.com,  www.rooplay.com, www.garfieldbingo.com, and www.trophybingo.com.

Page 25

ITEM 4           Controls and Procedures

(a)        Evaluation of disclosure controls and procedures.

As required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Company carried out an evaluation under the supervision and with the participation of the Company's management, including the President and Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as of September 30, 2017. In designing and evaluating the Company's disclosure controls and procedures, the Company and its management recognize that there are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their desired control objectives. Additionally, in evaluating and implementing possible controls and procedures, the Company's management was required to apply its reasonable judgment. Furthermore, in the course of this evaluation, management considered certain internal control areas, in which we have made and are continuing to make changes to improve and enhance controls. Based upon the required evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that as of September 30, 2017, the Company's disclosure controls and procedures were effective (at the "reasonable assurance" level mentioned above) to ensure that information required to be disclosed by the Company in the reports it files or submits 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.

From time-to-time, the Company and its management have conducted and will continue to conduct further reviews and, from time to time put in place additional documentation, of the Company's disclosure controls and procedures, as well as its internal control over financial reporting. The Company may from time to time make changes aimed at enhancing their effectiveness, as well as changes aimed at ensuring that the Company's systems evolve with, and meet the needs of, the Company's business. These changes may include changes necessary or desirable to address recommendations of the Company's management, its counsel and/or its independent auditors, including any recommendations of its independent auditors arising out of their audits and reviews of the Company's financial statements. These changes may include changes to the Company's own systems, as well as to the systems of businesses that the Company has acquired or that the Company may acquire in the future and will, if made, be intended to enhance the effectiveness of the Company's controls and procedures. The Company is also continually striving to improve its management and operational efficiency and the Company expects that its efforts in that regard will from time to time directly or indirectly affect the Company's disclosure controls and procedures, as well as the Company's internal control over financial reporting.

(b)        Changes in internal controls.

There were no significant changes in the Company's internal controls or other factors that could significantly affect the Company's internal controls subsequent to the date of their evaluation.

Page 26

PART II - OTHER INFORMATION

ITEM 1.          Legal Proceedings

We are not currently a party to any legal proceeding, and was not a party to any other legal proceeding during the quarter ended September 30, 2017. We are currently not aware of any other legal proceedings proposed to be initiated against the Company. However, from time to time, we may become subject to claims and litigation generally associated with any business venture.

ITEM 2.          Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended September 30, 2017, the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling $999,760 ($1,010,763 less issuance costs of $11,003). The private placement consisted of 2,887,895 units priced at $0.35 per unit. Each Unit was comprised of one common share and one share purchase warrant.  Each share purchase warrant is exercisable into one common share of the Company for 12 months following closing.  The exercise price of the warrants is $0.44 per share for the first six months following closing and $0.52 per share for the period which is 7-12 months following closing.

Subsequent to the quarter ended September 30, 2017, the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling $44,797 ($45,010 less issuance costs of $213). The private placement consisted of 128,600 units priced at $0.35 per unit. Each Unit was comprised of one common share and one share purchase warrant.  Each share purchase warrant is exercisable into one common share of the Company for 12 months following closing.  The exercise price of the warrants is $0.44 per share for the first six months following closing and $0.52 per share for the period which is 7-12 months following closing.

ITEM 3.          Defaults Upon Senior Securities

Not applicable.

ITEM 4.          Submission of Matters to a Vote of Security Holders

There were no matters submitted to the shareholders during the period.

Subsequent to the quarter ended September 30, 2017, we held our Annual Meeting of Stockholders for the purposes of electing our directors and to ratify the appointment of Davidson & Company LLP, Chartered Professional Accountants, as our independent auditors for the 2017 fiscal year. The Company issued a schedule 14A proxy statement to the shareholders on September 20, 2017.

All nominees for directors were elected and the appointment of auditors was ratified. The voting on each matter is set forth below:

a)         Elected to set the number of directors to be least 4 and no more than 7.

 

For

Against

Abstain

Not Voted

43,011,933

8,470

-

8,286,842

 

b)         Elected the following persons to serve as directors until the next annual meeting or until their successors are duly qualified:

T. M. Williams

J. M. Williams

F. Curtis (Non Executive Director)

W. Moore (Non Executive Director)

Page 27

Election of the Directors of the Company.

Nominee

For

Against

Abstain

Not Voted

T. M. Williams

42,995,329

-

25,073

8,286,843

J. M. Williams

42,995,429

-

24,973

8,286,843

F. Curtis

42,996,154

-

24,248

8,286,843

W. Moore

42,996,354

-

24,048

8,286,843

 

(c)        Approved the selection of Davidson & Company LLP, Chartered Professional Accountants as the Company's independent auditors for the fiscal year ending December 31, 2017.

For

Against

Abstain

Not Voted

51,274,794

-

32,451

-

(d)        The ratification of the existing Rolling Stock Option plan was approved.

For

Against

Abstain

Not Voted

42,984,744

35,658

-

8,286,843

Mr. Jason Williams will continue as President and CEO of the Shoal Games Ltd. organization and Mr. T. M.  Williams, will continue to serve as Executive Chairman.

ITEM 5.          Other Information

None

Page 28

ITEM 6.          Exhibits and reports on Form 8-K

Exhibits

The following instruments are included as exhibits to this Report.  Exhibits incorporated by reference are so indicated.

Exhibit Number

Description

4.4

Convertible Debenture between the Company and unrelated parties dated July 2, 2002. (b)

4.5

Common Stock Purchase Warrant between the Company and unrelated parties dated July 2, 2002. (b)

10.2

Asset Purchase Agreement by and between Bingo, Inc. and Progressive Lumber, Corp. dated January 18, 1999. (a)

10.24

Amended Consulting Agreement dated February 28, 2002, between the Company, T.M. Williams (Row), Ltd., and T.M. Williams. (c)

10.29

Amendment of Asset Purchase Agreement dated July 1, 2002. (d)

10.32

Code of Business Conduct and Ethics dated December 22, 2006. (e)

10.33

Amended Consulting Agreement dated June 16, 2010, between the Company, T.M. Williams (Row), Ltd., and T.M. Williams. (f)

10.36

The Marketing Service Agreement between the Bingo.com, Ltd. wholly owned subsidiary, Coral Reef Marketing Inc. and with Unibet International Limited dated March 19, 2010. (g)

10.37

Amended Consulting Agreement dated August 1, 2013, between the Company, T.M. Williams (Row), Ltd., and T.M. Williams. (h)

10.38

Consulting Agreement dated January 1, 2014, between the Company, Jayska Consulting Ltd., and J.M. Williams. (h)

10.39

Consulting Agreement dated January 1, 2014, between the Company, LVA Media Inc., and J.M. Williams. (h)

10.40

Consulting Agreement dated October 1, 2013, between the Company, Devereux Management Ltd., and C. M. Devereux. (h)

10.41

Consulting Agreement dated January 1, 2014, between the Company, Bromley Accounting Services Limited, and H. W. Bromley. (h)

31.1

Certificate of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-15(e) and 15d -15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated November 14, 2017.

31.2

Certificate of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-15(e) and 15d -15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated November 14, 2017.

32.1

Certification from the Chief Executive Officer of Shoal Games Ltd. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November 14, 2017.

32.2

Certification from the Chief Financial Officer of Shoal Games Ltd. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated November 14, 2017.

(a) Previously filed with the Registrant's registration statement on Form 10 on June 9, 1999.

(b) Previously filed with the Company's quarterly report on Form 10-Q for the period ended September 30, 2002, on November 14, 2002.

(c) Previously filed with the Company's quarterly report on Form 10-Q for the period ended June 30, 2002, on August 14, 2002.

(d) Previously filed with the Company's year end report on Form 10-K/A for the year ended December 31, 2002, on May 8, 2003.

(e) Previously filed with the Company's report on Form 8-K on December 26, 2006.

Page 29

(f) Previously filed with the Company's report on Form 8-K on June 17, 2010.

(g) Previously field with the Company's report on Form 8-K/A on June 18, 2012.

(h) Previously filed with the Company's report on Form 8-K on March 24, 2014.

Reports on Form 8-K.

There were no Form 8-K filed by the Company during the quarter ended September 30, 2017.

Reports Subsequent to the quarter ended September 30, 2017.

Subsequent to the quarter ended September 30, 2017, we filed a Form 8-K announcing the results of our Annual General Meeting on November 2, 2017.

Page 30

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:

November 14, 2017.

 

SHOAL GAMES LTD.

 

 

(Registrant)

Date:

November 14, 2017

           

            /S/ J.M. Williams

 

 

J. M. Williams, Chief Executive Officer, and President

(Principal Executive Officer)

Date:

November 14, 2017

 

 

            /S/ H. W. Bromley

 

 

H.W. Bromley, Chief Financial Officer

(Principal Accounting Officer)

Page 31

EXHIBIT 31.1

CERTIFICATIONS

I, J. M. Williams, certify that:

1.   I have reviewed this quarterly report on Form 10-Q of Shoal Games Ltd.;

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 Shoal Games Ltd. as of, and for, the periods presented in this quarterly report;

4. Shoal Games Ltd.'s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Shoal Games Ltd., 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 Shoal Games Ltd.'s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of September 30, 2017, covered by this quarterly report based on such evaluation; and

(d)  Disclosed in this report any change in Shoal Games Ltd.'s internal control over financial reporting that occurred during Shoal Games Ltd.'s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Shoal Games Ltd.'s internal control over financial reporting; and

5.  Shoal Games Ltd.'s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Shoal Games Ltd.'s auditors and the audit committee of Shoal Games Ltd.'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 Shoal Games Ltd.'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.

Signed:  /S/ J. M. Williams                                                                 Date: November 14, 2017

J. M. Williams,

Chief Executive Officer and President

(Principal Executive Officer)

Page 32

EXHIBIT 31.2

CERTIFICATIONS

I, H. W. Bromley, certify that:

  1. I have reviewed this quarterly report on Form 10-Q of Shoal Games Ltd.;

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 Shoal Games Ltd. as of, and for, the periods presented in this quarterly report;

4. Shoal Games Ltd.'s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Shoal Games Ltd., 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 Shoal Games Ltd.'s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of September 30, 2017, covered by this quarterly report based on such evaluation; and

(d)  Disclosed in this report any change in Shoal Games Ltd.'s internal control over financial reporting that occurred during Shoal Games Ltd.'s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, Shoal Games Ltd.'s internal control over financial reporting; and

5.  Shoal Games Ltd.'s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Shoal Games Ltd.'s auditors and the audit committee of Shoal Games Ltd.'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 Shoal Games Ltd.'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.

 

Signed:  /S/ H. W. Bromley                                                                                Date: November 14, 2017

H.W. Bromley,

Chief Financial Officer

(Principal Accounting Officer)
 

Page 33

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 Shoal Games Ltd. (the "Company") on Form 10-Q for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, J. M. Williams, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

 

                                                                        /S/ J.M. Williams         

                                                            J. M. Williams

                                                            President and Chief Executive Officer

                                                                        November 14, 2017

A signed original of this written statement required by Section 906 has been provided to Shoal Games Ltd. and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

Page 34

EXHIBIT 32.2

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 Shoal Games Ltd. (the "Company") on Form 10-Q for the period ended September 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, H. W. Bromley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

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

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

                                                                        /S/ H. W. Bromley        

                                                            H. W. Bromley

                                                            Chief Financial Officer

                                                                         November 14, 2017

A signed original of this written statement required by Section 906 has been provided to Shoal Games Ltd. and will be retained by the company and furnished to the Securities and Exchange Commission or its staff upon request.

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EX-101.CAL 2 sgldf-20170930_cal.xml SHOAL GAMES LTD. Q3 2017 CAL EX-101.DEF 3 sgldf-20170930_def.xml SHOAL GAMES LTD. Q3 2017 DEF EX-101.LAB 4 sgldf-20170930_lab.xml SHOAL GAMES LTD. 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Employee Stock Option [Member] Allowance for doubtful accounts Cost of sales: us-gaap_DueToRelatedPartiesCurrentAndNoncurrent Due to Related Parties Accounts receivable less allowance for doubtful accounts $27,666 (December 31, 2016 - $27,666) (Note 3) Net accounts receivable Statement [Line Items] Operating expenses: us-gaap_DerivativeLiabilities Derivative Liability Related Party Transactions Disclosure [Text Block] us-gaap_CostsAndExpenses Total operating expenses us-gaap_ResearchAndDevelopmentInProcess Research and Development in Process Accumulated Foreign Currency Adjustment Attributable to Parent [Member] Games development (Note 5) Supplementary information: us-gaap_PropertyPlantAndEquipmentUsefulLife Property, Plant and Equipment, Useful Life Net Book Value Equipment, net Current assets: us-gaap_NetCashProvidedByUsedInFinancingActivities Net cash provided by financing activities us-gaap_DebtInstrumentInterestRateStatedPercentage Debt Instrument, Interest Rate, Stated Percentage Game development amortization Game development amortization (Note 5) us-gaap_NetCashProvidedByUsedInInvestingActivities Net cash used in investing activities us-gaap_NetCashProvidedByUsedInOperatingActivities Net cash used in operating activities Sale of Stock [Domain] us-gaap_TableTextBlock Notes Tables Sale of Stock [Axis] Private Placement [Member] Property, Plant and Equipment, Type [Domain] Property, Plant and Equipment, Type [Axis] Accounts receivable Other comprehensive income (loss) us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest Loss before income taxes EX-101.PRE 5 sgldf-20170930_pre.xml SHOAL GAMES LTD. Q3 2017 PRE EX-101.INS 6 sgldf-20170930.xml SHOAL GAMES LTD. Q3 2017 INS false --12-31 Q3 2017 2017-09-30 10-Q 0001318482 65048592 Yes Smaller Reporting Company SHOAL GAMES LTD. No No sgldf 5541179 4713621 4935274 3857636 5346585 4326553 9691 13300 P1Y P1Y P1Y <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; Concentrations of Credit Risk: </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> institution. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company had total cash balances of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$818,085</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$60,190</div>) at financial institutions, where <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$612,699</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div>) is in excess of federally insured limits. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has concentrations of credit ri<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">sk with respect to accounts receivable, the majority of its accounts receivable are concentrated geographically in the United States amongst a small number of customers.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> customers, totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9,691</div> who accounte<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">d for greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the total accounts receivable. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">four</div> customers, totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,300</div> who accounted for greater than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the total accounts receivable.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company controls credit risk through monitoring proc<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">edures and receiving prepayments of cash for services rendered.&nbsp; The Company performs credit evaluations of its customers but generally does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> require collateral to secure accounts receivable.</div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0px" cellpadding="0pt" cellspacing="0pt" style="margin: 0pt auto 0pt 36pt; text-indent: 0px; font-size: 10pt; min-; min-width: 700px;"> <tr> <td style="vertical-align: top; width: 35.7%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 31%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 33.199997%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> </tr> <tr> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:35.7%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Company</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:31%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Registered</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:33.2%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;">% Owned</div></div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (Canada) Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Coral Reef Marketing Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Games <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">(UK) Plc</div></div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">99%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (UK) Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Kenya Limited</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Kenya</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> </table></div> 11000 25000 5000 7500 25000 0.025 0.025 58284 23461 23461 23461 23461 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 52%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Opening total development costs</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,935,274</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,857,636</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,346,585</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,326,553</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Development during the period</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605,905</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">855,985</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,594</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">387,068</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Closing total development costs</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,541,179</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,713,621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,541,179</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,713,621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> 0.60 0.64 863660 94191 94191 94191 -498791 -498791 5171 53698 19145 62021 22110 23461 94191 0 0 1 1 1 1 1 1 1 1 1 0.99 1 1 1 33000 33000 19638 19676 22500 22500 1000 2000 23447 13658 0 4985 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Prepaid expenses</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company prepaid <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$863,660</div> for future development expenses for Trophy Bingo and Garfield's Bingo. During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$332,125</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$32,744</div>) was expensed. As at <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 31, 2016, </div>Roadhouse Interactive Limited, the developer of Trophy Bingo and Garfield's Bingo was placed in receivership, resulting in a loss of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$498,791</div> on prepaid development. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has other prepaid expenses of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$14,888</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - $</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25,659</div>) as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017. </div>The Company has prepaid for future licenses fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,225</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,835</div>) as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017. </div></div></div></div> 19225 7835 999760 44797 39919 418181 0 0.35 0.45 0.34 0.35 2887895 2323779 128600 1200000 123284 123284 21671 3667 44132 44860 16466 17194 89502 87959 24580 24580 27666 27666 27666 27666 879837 129093 868664 110878 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 18pt;"></td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(a)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Basis of presentation:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">These consolidated financial statem<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ents have been prepared in accordance with accounting principles generally accepted in the United States of America (&quot;US GAAP&quot;) applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company's subsidiaries, </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">&nbsp;</div> <div> <table border="0px" cellpadding="0pt" cellspacing="0pt" style="margin: 0pt auto 0pt 36pt; text-indent: 0px; font-size: 10pt; min-width: 700px;"> <tr> <td style="vertical-align: top; width: 35.7%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 31%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 33.199997%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> </tr> <tr> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:35.7%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Company</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:31%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Registered</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:33.2%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;">% Owned</div></div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (Canada) Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Coral Reef Marketing Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Games <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">(UK) Plc</div></div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">99%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (UK) Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Kenya Limited</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Kenya</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">In addition, there are the following dormant subsidiaries; Bingo.com (Antigua) Inc., Bingo.com<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> (Wyoming) Inc., and Bingo Acquisition Corp.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>Shoal Media UK Ltd. was incorporated under the laws of England and Wales.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>Rooplay Media Kenya Limited was incorporated under the laws of Kenya.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">All inter-company balances and transactions have been eliminated in the consolidated financial statements.</div></div></div></div></div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis of Presentation: </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accompanying unaudited financial statements have been prepared by Shoal Games Ltd. (&quot;the Company&quot;) in confo<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">rmity with accounting principles generally accepted in the United States of America (&quot;US GAAP&quot;) applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.&nbsp; Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.&nbsp; In the opinion of management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.&nbsp; All adjustments are of a normal recurring nature, except as otherwise noted below.&nbsp; These unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>included in the Company's Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K, filed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>with the Securities and Exchange Commission.&nbsp; The results of operations for the interim periods are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results of operations for any other interim period or for a full fiscal year. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Continuing operat<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ions</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">These unaudited interim consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.&nbsp; The Company has reported losses from operations for the quarters ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> and has an accumulated deficit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22,849,137</div> as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017.&nbsp; </div>This raises substantial doubt about the Company's ability to continue as a going concern.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Com<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">pany, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">and enable the timely discharge of the Company's obligations.&nbsp; If management is unable to identify sources of additional cash flow in the short term, it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required to further reduce or limit operations.</div></div></div> 361510 120503 818085 60190 570086 82417 757895 -487669 612699 0 0.44 0.52 0.55 0.65 0.44 0.52 1 1 1 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp; Commitments:</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company leases office facilities in Vancouver, British Columbia, Canada, and The Vall<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ey, Anguilla, British West Indies. These office facilities are leased under operating lease agreements. The Canadian operating lease expired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>but unless <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> day notice is given this lease automatically renews on a month to month basis until notice is given. The Anguillan operating lease expired on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2011 </div>but unless <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> month's notice is given it automatically renews for a future <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> months until notice is given. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Minimum lease payments under these operating leases are approximately as<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> follows:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 84%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 84%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">2017</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,486</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">2018</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company paid rent expense totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,895</div> for the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 (</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,669</div>).<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has a management consulting agreement with T.M. Williams (Row), Inc., an <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Anguilla incorporated company, and Mr. T. M. Williams. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2014, </div>the Company amended a previous agreement with Mr. T. M. Williams to provide for a consultancy payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.5%</div> of the monthly social bingo business with a minimum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,000</div> and a maximum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> per month.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2014, </div>the Company entered into an agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of the Company for the provision of services of Mr. <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of Pound Sterling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,000</div> per month. In addition, during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2014, </div>the Company entered into an agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.5%</div> of the monthly social bingo business with a minimum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,500</div> and a maximum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> per month.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company signed a licensing agreement with Paws, Inc. for the license for Garfield's Bingo expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019. </div>During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company sign<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ed a licensing agreement with Paws, Inc. for the license of Garfield games in Rooplay expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2019. </div>During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company signed a licensing agreement with Bulls Presstjanst AB for the license of Moomin games in Rooplay expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2020. </div>During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company signed a licensing agreement with Mister Men Limited for the license of Mr. Men and Little Miss games in Rooplay expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 15, 2020. </div>During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company signed a licensing agreement with Endemol Shine Group BV for the license of Mr. Bean Animation Series games in Rooplay expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2020. </div>Subsequent to the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company signed a licensing agreement with Rainbow SRL for the license of the Winx club games in Rooplay expiring on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 31, 2020. </div>These agreements have commitments to pay royalties on the revenue of the products subject to minimum payments.</div></div></div> 0 0 0 64919992 59708318 64919992 59708318 23003127 21223271 -1285699 -2410934 -462710 -1156098 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Concentrations </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; text-decoration: underline;">Major customers</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company sold subscriptions on its site Rooplay and sold in-app purchases on its social bingo sites, Trophy Bingo and Garfield's Bingo. There was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> single player who had purchased more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">the Rooplay, Trophy Bingo and Garfield's Bingo revenue. The Company is reliant on the Google App, iOS App and Amazon App Stores to provide a platform for Rooplay, Trophy Bingo and Garfield's Bingo to be played thereon. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company offered limited advertising. The Company is reliant on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> sales customer who provides the advertising revenue. &nbsp;</div></div></div> 361510 120503 1382408 1760726 508086 578840 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; Promissory notes:</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company has issued unsecured promissory notes from shareholders of the Company. The notes were repayable on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, </div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div> The interest on the notes are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2%</div> per annum, calculated and compounded annually and paid annually.&nbsp; Interest in arrears shall accrue interest. The unpaid principal amount due hereunder <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div> from time to time without affecting the validity of this note. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The promissory notes are accounted for by discounting the notes in a manner that reflects the entity's borrowing rate when interest cost is recognized in subsequent periods. The Company applied an estimated market rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%</div> to the pr<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">omissory notes. In doing so, the Company used the discounted cash flow approach to value the present value of the notes. The cash flow stream from the coupon interest payments and the final principal payment were discounted at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%</div> to arrive at the valuations. The Company used a deemed rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%</div> as the appropriate discount rate after examining the interest rates for similar instruments issued in the same time frame for similar companies without the conversion feature. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$400,000</div> promissory notes and recognized a discount on the promissory notes of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$58,284</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,171</div> of interest accretion.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$188,136</div> promissory notes and recognized a discount o<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">n the promissory notes of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$23,461.</div> The Company recognized interest accretion of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$53,698</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nine</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,145</div> for the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017. </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">These notes were issued with the same terms and conditions as the pr<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">omissory notes issued in the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016.</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>the maturity date on the promissory notes was extended to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2020. </div>The Company treated the change as an extinguishment and reissuance of the notes. The Company recognized a<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> discount on the promissory notes of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$94,191</div> from the extinguishment and reissuance of the notes.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">September</div> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Opening balance</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">347,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Promissory note issued</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188,136</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Discount on <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">promissory note</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(23,461</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(58,284</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gain on extinguishment and reissuance of promissory notes with related parties</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(94,191</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Extinguishment of promissory notes to related parties</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(418,181</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Reissuance of <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">promissory notes to related parties</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">418,181</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Accrued interest</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,323</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">811</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Interest accretion</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,171</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Closing balance</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480,203</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">347,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div></div> 0.02 0.02 0.02 15959 15017 15959 15017 15959 15017 8067 2615 1501 965 501 123284 98615 98615 11276 5356 0 0 804 2 0 0 0 0 3000 500 7472 4852 0 2 -0.02 -0.04 -0.01 -0.02 418181 -24669 -24669 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">June 30,</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Average stock price (CAD)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.60</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.64</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected dividend yield</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Expected stock price volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.51</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.71</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected life of warrants (in years)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table></div> P1Y P1Y 0.327 0.33 0.0151 0.0071 0.15 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 27pt;"><div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(g)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Financial instruments: </div></div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(i)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Fair values:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">The fair value of accounts receivable, accounts payable, accrued liabilities, promissory notes and accounts payable and accrued liabilities - re<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">lated party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.&nbsp; Cash is carried at fair value using a level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> fair value measurement. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">In general, fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs utilize <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.&nbsp; The Company's cash was measured using Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs. Derivative liability - warrants was measured using Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(ii)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Foreign currency risk:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">The Company operates internationally, which gives rise to the risk that cash flows <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be adversely impacted by exchange rate fluctuations.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.</div></div></div></div></div></div></div></div></div></div> -2861 -31192 1849 -10759 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 27pt;"><div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(d)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Foreign currency:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">financial statements under Statement ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">830,</div> Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Gains and losses from restatement of foreign currency monetary and non-monet<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ary assets and liabilities are included in net income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings. </div></div></div></div></div></div></div></div></div></div> 94191 74888 -120372 18853 -67745 -1285699 -2410942 -462710 -1156097 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp; Income Taxes:</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Shoal Games Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> West Indies. However certain of the Company's subsidiaries incur income taxation.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 3</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> are presented below:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax assets:</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Net operating loss carry forwards</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,959</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,017</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Valuation Allowance </div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,959</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,017</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">In assessing the <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">realizability of deferred tax assets, management considers whether it is more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> that some portion or all of the deferred tax assets will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of defer<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">red tax assets.&nbsp; </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Subsequent to the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>Shoal Media (Canada) Inc., a subsidiary of Shoal Games Ltd., received the British Columbia Interactive Digital Media Tax Credit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$39,919</div> for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>from th<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e British Columbia Provincial Government. The Company recognizes the revenue from this tax credit upon receipt of funds. </div></div></div> -8 1 25467 51240 -728 -15551 619 40894 8067 -524 13 139 5 38 8323 811 0 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 18pt;"></td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(e)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Software Development Costs:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">Software development costs incurred in <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2014, </div>the Company obtained technological feasibility and amortized the capitalized software development costs over a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.&nbsp; The Company completed the amortization of the capitalized Trophy Bingo software development expenses on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016.&nbsp;&nbsp;&nbsp; </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">If a determination is ma<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">de that capitalized amounts are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be exposed to increases or decreases in revenue that could be material.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Total software development costs for the development of all <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> products; Rooplay, Garfield's Bingo a<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">nd Trophy Bingo, were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,541,179</div> as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 (</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,713,621</div>).</div></div></div></div></div></div></div></div></div></div> 701267 444680 879837 129093 221064 96982 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp; Accounts Receivable:</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The accounts receivable as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>is summarized as follows:</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">December</div> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Accounts receivable</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,132</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,860</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Provision for doubtful accounts</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(27,666</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(27,666</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Net accounts receivable</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,466</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,194</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company had bank accounts with the National Bank of Anguilla. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the National Bank of Anguilla, filed for chapter <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> protection and accordingly the Company expensed the <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">balance on account of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$27,666</div> as a doubtful debt during fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> </div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 70%; border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Book Value</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Anguilla</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">828</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Canada</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,635</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,097</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">United Kingdom</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">917</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,223</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,173</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,148</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> 347698 480203 480203 347698 1973624 1539985 -3640 -5104 -1212089 -2022550 -1285699 -2410934 -462710 -1156098 -1285699 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 27pt;"><div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(f)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">New accounting pronouncements and changes in accounting policy:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Revenue from Contracts with Customers and issu<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ed subsequent amendments to the initial guidance in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2016, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2016 </div>within ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">08,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> respectively. The guidance in this update supersedes the revenue recognition requirements in ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605,</div> Revenue Recognition, and most industry-specific guidance throughout the Codification. Additionally, this update supersedes some cost guidance included in ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,</div> Revenue Recognition - Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> in a contract with a customer (for example, assets within the scope of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">360,</div> Property, Plant, and Equipment, and intangible assets, within the scope of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350,</div> Intangibles - Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in this update. The standard was to be effective for the Company as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>but in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB delayed the effective date of the new revenue accounting standard to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2019, </div>and would permit early adoption as of the original effective date. Earlier adoption is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> otherwise permitted for public entities. An entity can apply the revenue standard retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (simplified transition method). The Company is currently assessing the impact of this update on its consolidated financial statements. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet selected an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2016, </div>the FASB voted to defer the effective date of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that l<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ease contracts with customers are a scope exception. Public business entities <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>We are currently assessing the impact of the guidance on our consolidated financial statements.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> Financial Instruments - Overall (Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>): Recognition and Measurement of Financial<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Assets and Financial Liabilities (&quot;ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01&quot;</div>), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>choose to measure equity investments that do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> also impacts the presentation and disclosure requirements for financial instruments. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Early adoption is permitted only for certain provisions. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect that the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> will have a material effect on its consolidated financial statements.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of mor<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months. Lessees are permitted to make an accounting policy election to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recognize the asset and liability for leases with a term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months or less. The ASU does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>and interim periods within those years, with early adoption permitted. Management is evaluating the requirements of this guidance and has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined the impact of the adoption on the Company's financial position or results of operations.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> &quot;Finan<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">cial Instruments - Credit Losses (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">326</div>): Measurement of Credit Losses on Financial Instruments&quot;. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2019. </div>Early adoption is permitted for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> &quot;Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>)&quot;. The new guidance is intended to reduce diversity in practi<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ce in how certain transactions are classified in the statement of cash flows. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Financial Accounting Standards Board (&quot;FASB&quot;) issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>). The standard improves the accounting for income tax consequences of intra-entry transfers of assets other than inventory. This pronouncement is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>The amendments in this ASU should be applied using a modified retrospective approach. The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): Scope of Modification Accounting. <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718.</div> &nbsp;This pronouncement is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>but early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">There have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> other recent accounting standards, or changes in accounting standards, during the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>as compared to the recent accounting standards described in the Annual Report, that are of materia<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">l significance, or have potential material significance, to us.</div></div></div></div></div></div></div></div></div></div> 597270 400811 1 2500 6000 1000 2000 -1307520 -1881098 -489233 -646585 1486 4895 7669 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div> Game development assets: </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2012, </div>the Company commenced development of a social bingo game, Trophy Bingo. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">14,</div> the Company soft launched Trophy Bingo. The Company ceased to capitalize the development costs and commenced the amortization of the capitalized development costs over a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> years. As at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the capitalized development costs were amortized in full.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company obtained the license to develop Garfield's Bingo. The game was launched in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2016. </div>In addition, during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016, </div>the Company obtained Rooplay. The C<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ompany commenced development of the Rooplay platform. During the period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company has expensed the development costs of all <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> products as incurred and has expensed the following development costs for its <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> products. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 52%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Opening total development costs</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,935,274</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,857,636</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,346,585</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,326,553</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Development during the period</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605,905</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">855,985</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,594</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">387,068</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Closing total development costs</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,541,179</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,713,621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,541,179</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,713,621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div></div> 0 0 218057 186205 96369 65601 11003 4553 213 3640 5104 14888 25659 34113 33494 1010763 1045000 790281 45010 540000 408102 1785488 1513354 400000 188136 188136 188136 26631 621 828 9635 8097 917 1223 11173 10148 P3Y 27666 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.</div> Related Party Transactions:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div>) to a company owned by a current director and officer of the Company for payment of services rendered of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$33,000</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$33,000</div>) by the current director and officer of the Company.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$804</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2</div>) to a current director and officer of the Company for expenses incurred.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> Dec</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ember <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div>) to a company owned by a current director and officer of the Company for payment of services rendered of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,638</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,676</div>) by the current director and officer of the Company.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div> (D<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ecember <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> - <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div>) to a company owned by a current director and officer of the Company for payment of services rendered of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22,500</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$22,500</div>) by the current director and officer of the Company.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,00</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500</div>), to independent directors of the Company for payment of services rendered. During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company accrued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,000</div>) to the independent directors in director fees. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Th<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e Company has a liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,472</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,852</div>), to an officer of the Company for payment of services rendered and expenses incurred of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$23,447</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$13,658</div>) by the officer of the Company. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has a liability of $<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">nil</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2</div>), to a Company owned by a previous director of the Company for payment of consulting fees of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$nil</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,985</div>) by the previous director of the Company. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The Company has promissory notes totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$597,270</div> (Decem<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ber <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$400,811</div>), including interest, from shareholders holding more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the Company. The interest on the notes are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2%</div> per annum, calculated and compounded annually and paid annually. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the directors an<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">d shareholders holding more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the Company's shares subscribed for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,200,000</div> units totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$540,000</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$408,102</div>) in the private placement. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The related party transactions are in the normal course of operations and were measured at the exchange a<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">mount, which is the amount of consideration established and agreed to by the related party. </div></div></div> 605905 855985 194594 387068 332125 32744 -22849137 -21563438 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 18pt;"></td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(c)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Revenue recognition:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Trophy Bingo and Garfield's Bing<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">o revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Advertising revenues, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> generate<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">d in Trophy Bingo or Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.</div></div></div></div></div></div></div></div></div> 74888 241138 18853 52758 339827 316646 121697 97626 8127 29519 2216 5421 376 63 16 36 489 803 134 161 52536 194025 12758 40217 13360 16728 3729 6923 74888 241138 18853 52758 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">December</div> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Accounts receivable</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,132</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">44,860</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Provision for doubtful accounts</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(27,666</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(27,666</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Net accounts receivable</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,466</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,194</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">September</div> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Opening balance</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">347,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Promissory note issued</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">188,136</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Discount on <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">promissory note</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(23,461</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(58,284</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Gain on extinguishment and reissuance of promissory notes with related parties</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(94,191</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Extinguishment of promissory notes to related parties</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(418,181</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Reissuance of <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">promissory notes to related parties</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">418,181</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Accrued interest</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,323</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">811</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Interest accretion</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,171</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Closing balance</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">480,203</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">347,698</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax assets:</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Net operating loss carry forwards</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,959</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,017</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Valuation Allowance </div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,959</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(15,017</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">-</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 84%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 84%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">2017</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,486</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">2018</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 9pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Months</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ended</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">September</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">30, 2017</div></div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="4" style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; text-decoration: underline;">Total revenue</div></div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 48%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Western Europe</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,127</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,519</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,216</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,421</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Central, Eastern and <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Southern Europe</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">376</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Nordics</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">489</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">803</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">134</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">161</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">North America</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,536</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,025</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,758</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,217</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Other</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,360</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,728</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,729</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,923</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total revenue</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,888</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">241,138</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,853</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,758</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">Number of</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">options</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">Weighted average</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">exercise price</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding and exercisable, December 31, 2015</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,010,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding, December 31, 2016</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,010,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expired</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(130,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding, September 30, 2017</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">880,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 70%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercise price</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expiry date</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt 1.65pt 0pt 0pt; text-align: right;">December 21, 2021</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected dividend yield</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected stock price volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Weighted average volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.9</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected life of options (in years)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Forfeiture rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Intrinsic value</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42,357</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11.</div> Segmented information:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; text-decoration: underline;">Revenue</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company operates in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> reportable business segment, the net revenue from Trophy Bingo and Garfield's Bingo and Rooplay.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The Company had the following revenue by geographical region.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 9pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Months</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ended</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">September</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">30, 2017</div></div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Nine</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Three</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Months</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">ended</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td colspan="4" style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; text-decoration: underline;">Total revenue</div></div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="text-align: left; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 48%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Western Europe</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,127</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,519</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,216</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,421</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Central, Eastern and <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Southern Europe</div></div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">376</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Nordics</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">489</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">803</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">134</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">161</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">North America</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,536</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">194,025</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,758</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">40,217</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Other</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,360</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,728</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,729</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,923</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Total revenue</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">74,888</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">241,138</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">18,853</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 10%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">52,758</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; text-decoration: underline;">Equipment</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Company's equipment is located as follows:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 70%; border-bottom: 1px solid rgb(0, 0, 0); vertical-align: top; border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Net Book Value</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: center; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Anguilla</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">621</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">828</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Canada</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,635</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,097</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">United Kingdom</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">917</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,223</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,173</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,148</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div></div> 151483 394389 71351 26044 0.54 0.78 0.019 0.78 1010000 880000 0.42 0.42 130000 60000 0 1010000 42357 0 0.42 0.42 P5Y 59708318 64919992 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Summary of significant accounting policies:</div></div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(a)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Basis of presentation:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">These consolidated financial statem<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ents have been prepared in accordance with accounting principles generally accepted in the United States of America (&quot;US GAAP&quot;) applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company's subsidiaries, </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">&nbsp;</div> <div> <table border="0px" cellpadding="0pt" cellspacing="0pt" style="margin: 0pt auto 0pt 36pt; text-indent: 0px; font-size: 10pt; min-width: 700px;"> <tr> <td style="vertical-align: top; width: 35.7%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 31%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="vertical-align: top; width: 33.199997%; border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> </tr> <tr> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:35.7%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Company</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:31%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Registered</div></div> </td> <td style="vertical-align:top;border-bottom:solid 1px #000000;;width:33.2%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;"><div style="display: inline; font-weight: bold;">% Owned</div></div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (Canada) Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Coral Reef Marketing Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media Inc.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Anguilla</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Games <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">(UK) Plc</div></div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">99%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Shoal Media (UK) Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">United Kingdom</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="vertical-align: top; width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Ltd.</div> </td> <td style="vertical-align: top; width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">British Columbia, Canada</div> </td> <td style="vertical-align: top; width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 35.7%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Rooplay Media Kenya Limited</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 31%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: left;">Kenya</div> </td> <td style="vertical-align: top; border-bottom: 1px solid rgb(0, 0, 0); width: 33.199997%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;">100%</div> </td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">In addition, there are the following dormant subsidiaries; Bingo.com (Antigua) Inc., Bingo.com<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> (Wyoming) Inc., and Bingo Acquisition Corp.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017, </div>Shoal Media UK Ltd. was incorporated under the laws of England and Wales.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>Rooplay Media Kenya Limited was incorporated under the laws of Kenya.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">All inter-company balances and transactions have been eliminated in the consolidated financial statements.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(b)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Use of estimates:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">The pre<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">paration of consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Significant areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable, the valuation of promissory <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">notes and the estimated market rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%,</div> the derivative liability - warrants valuation and the valuation of deferred tax assets.&nbsp; Actual results <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>differ significantly from these estimates.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(c)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Revenue recognition:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Trophy Bingo and Garfield's Bing<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">o revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Advertising revenues, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> generate<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">d in Trophy Bingo or Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(d)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Foreign currency:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">financial statements under Statement ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">830,</div> Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Gains and losses from restatement of foreign currency monetary and non-monet<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ary assets and liabilities are included in net income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(e)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Software Development Costs:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">Software development costs incurred in <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2014, </div>the Company obtained technological feasibility and amortized the capitalized software development costs over a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.&nbsp; The Company completed the amortization of the capitalized Trophy Bingo software development expenses on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016.&nbsp;&nbsp;&nbsp; </div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">If a determination is ma<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">de that capitalized amounts are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be exposed to increases or decreases in revenue that could be material.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Total software development costs for the development of all <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> products; Rooplay, Garfield's Bingo a<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">nd Trophy Bingo, were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$5,541,179</div> as at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017 (</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2016 - </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,713,621</div>).</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(f)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">New accounting pronouncements and changes in accounting policy:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Revenue from Contracts with Customers and issu<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ed subsequent amendments to the initial guidance in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2016, </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2016 </div>within ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">08,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> and ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,</div> respectively. The guidance in this update supersedes the revenue recognition requirements in ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605,</div> Revenue Recognition, and most industry-specific guidance throughout the Codification. Additionally, this update supersedes some cost guidance included in ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35,</div> Revenue Recognition - Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> in a contract with a customer (for example, assets within the scope of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">360,</div> Property, Plant, and Equipment, and intangible assets, within the scope of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350,</div> Intangibles - Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in this update. The standard was to be effective for the Company as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2017, </div>but in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB delayed the effective date of the new revenue accounting standard to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2019, </div>and would permit early adoption as of the original effective date. Earlier adoption is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> otherwise permitted for public entities. An entity can apply the revenue standard retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (simplified transition method). The Company is currently assessing the impact of this update on its consolidated financial statements. The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet selected an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 1, 2016, </div>the FASB voted to defer the effective date of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that l<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ease contracts with customers are a scope exception. Public business entities <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>We are currently assessing the impact of the guidance on our consolidated financial statements.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01,</div> Financial Instruments - Overall (Subtopic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">825</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>): Recognition and Measurement of Financial<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Assets and Financial Liabilities (&quot;ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01&quot;</div>), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>choose to measure equity investments that do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> also impacts the presentation and disclosure requirements for financial instruments. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Early adoption is permitted only for certain provisions. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect that the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">01</div> will have a material effect on its consolidated financial statements.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> Leases (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">842</div>), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of mor<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">e than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months. Lessees are permitted to make an accounting policy election to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> recognize the asset and liability for leases with a term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">twelve</div> months or less. The ASU does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018, </div>and interim periods within those years, with early adoption permitted. Management is evaluating the requirements of this guidance and has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined the impact of the adoption on the Company's financial position or results of operations.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13,</div> &quot;Finan<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">cial Instruments - Credit Losses (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">326</div>): Measurement of Credit Losses on Financial Instruments&quot;. The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2019. </div>Early adoption is permitted for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2018. </div>The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> &quot;Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>)&quot;. The new guidance is intended to reduce diversity in practi<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ce in how certain transactions are classified in the statement of cash flows. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> is effective for fiscal years, and interim periods within those years, beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Financial Accounting Standards Board (&quot;FASB&quot;) issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16,</div> Income Taxes (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>). The standard improves the accounting for income tax consequences of intra-entry transfers of assets other than inventory. This pronouncement is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017. </div>The amendments in this ASU should be applied using a modified retrospective approach. The Company is currently evaluating the impact of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div> on its financial position, results of operations and liquidity.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): Scope of Modification Accounting. <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718.</div> &nbsp;This pronouncement is effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2017 </div>but early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:justify;">There have been <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> other recent accounting standards, or changes in accounting standards, during the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>as compared to the recent accounting standards described in the Annual Report, that are of materia<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">l significance, or have potential material significance, to us.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(g)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Financial instruments: </div></div> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(i)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Fair values:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">The fair value of accounts receivable, accounts payable, accrued liabilities, promissory notes and accounts payable and accrued liabilities - re<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">lated party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.&nbsp; Cash is carried at fair value using a level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> fair value measurement. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">In general, fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs utilize <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.&nbsp; The Company's cash was measured using Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> inputs. Derivative liability - warrants was measured using Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> inputs.</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;">&nbsp;</td> <td style="width: 27pt;"> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(ii)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> </div></div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Foreign currency risk:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:35.45pt;margin-right:0pt;margin-top:0pt;text-align:left;">The Company operates internationally, which gives rise to the risk that cash flows <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be adversely impacted by exchange rate fluctuations.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.</div></div></div> 5211674 0 1785488 1785488 21223271 -21563438 24580 -315587 23003127 -22849137 24580 178570 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp; Stockholders' Equity (Deficiency):</div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The holders of common stock are entitled to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> vote for each share held.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp; There are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> restrictions that limit the Company's ability to pay dividends on its common stock.&nbsp; The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> declared any dividends since incorporation.&nbsp; The Company's common stock has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> par value per common stock. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">(a)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock issuances:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; text-decoration: underline;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 2017 </div></div></div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$999,760</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,010,763</div> less issuance costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11,003</div>). The private placement consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,887</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">,895</div> units priced at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.35</div> per unit. Each Unit was comprised of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share purchase warrant.&nbsp; Each share purchase warrant is exercisable into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share of the Company for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing.&nbsp; The exercise price of the warrants is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.44</div> per share for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months following closing and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.52</div> per share for the period which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; text-decoration: underline;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 2017</div></div></div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company closed a TSX Venture Exchange approved non-broker<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ed private placement financing totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$1.045</div> million (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$790,281</div> less issuance costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,553</div>). The private placement consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,323,779</div> units priced at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.45</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.34</div>) per unit. Each Unit was comprised of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share purchase warrant.&nbsp; Each share purchase warrant is exercisable into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share of the Company for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing.&nbsp; The exercise price of the warrants is Canadian <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.55</div> per share for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months following closing and Canadian <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.65</div> per share for the period which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The warrants have an exercise price in Canadian dollars whilst the Company's functional currency is US Dollars. Therefore, in accordance with ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">815</div> - Derivatives and Hedging, the warrants have a d<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">erivative liability value. This liability value has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> effect on the cashflow of the Company and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> represent a cash payment of any kind. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the fair value of derivative liability of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$123,284</div> has been estimated o<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">n the date of the subscription using the Binomial Lattice pricing model. During the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>there was a gain on derivative liability - warrants of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$24,669</div> and the derivative liability - warrants value reduced to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$98,615</div> with the following assumptions:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">June 30,</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Average stock price (CAD)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.60</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.64</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected dividend yield</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Expected stock price volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">33</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.51</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.71</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected life of warrants (in years)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 14%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The average stock price is calculated on the probability weighted average price of the exercise of the warrants.</div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;"><div style="display: inline; text-decoration: underline;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2017</div></div></div></div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">Subsequent to the quarter ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div>the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$44,797</div> (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$45,010</div> less issuance costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$213</div>). The private placement consisted of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">128,600</div> units priced<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.35</div> per unit. Each Unit was comprised of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share purchase warrant.&nbsp; Each share purchase warrant is exercisable into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> common share of the Company for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing.&nbsp; The exercise price of the warrants is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.44</div> per share for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">six</div> months following closing and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.52</div> per share for the period which is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months following closing. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">(b)<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock option plans:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div></div> options were granted or exercised during the period ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017. </div>During the quarte<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">r ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> September 30, 2017, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">60,000</div> options were cancelled and expired unexercised. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 18pt; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">Number of</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">options</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); border-top: thin solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">Weighted average</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">exercise price</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 68%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding and exercisable, December 31, 2015</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,010,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding, December 31, 2016</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,010,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> <td>&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Granted</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expired</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(130,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Outstanding, September 30, 2017</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">880,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">&nbsp;</td> <td style="width: 13%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.42</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;">&nbsp;</td> </tr> </table> </div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">The fair value of each option grant has been estimated on<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> the date of the grant using the Black-Scholes option-pricing model with the following assumptions:</div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">September</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">30, 2017</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-top: thin solid rgb(0, 0, 0); border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">December</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:right;">31, 2016</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; padding-bottom: 1px;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; width: 70%;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Exercise price</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">CAD$0.54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expiry date</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div><div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin: 0pt 1.65pt 0pt 0pt; text-align: right;">December 21, 2021</div> </td> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected dividend yield</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected stock price volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Weighted average volatility</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-bottom: 0pt; margin-top: 0pt;">Risk-free interest rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 9.05pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.9</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Expected life of options (in years)</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Forfeiture rate</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt;">%</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Intrinsic value</div> </td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">42,357</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);">&nbsp;</td> <td style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times\ New\ Roman, Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;">&nbsp;</td> </tr> </table> </div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"><tr style="vertical-align: top;"><td style="width: 27pt;"><div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;">(b)</div> </td> <td> <div style=" margin: 0pt; text-align: left; font-size: 10pt; font-family: Times\ New\ Roman, Times, serif;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Use of estimates:</div></div> </td> </tr> </table> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">The pre<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">paration of consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods. </div></div> <div style=" font-family: Times New Roman, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">&nbsp;</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:36pt;margin-right:0pt;margin-top:0pt;text-align:left;">Significant areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable, the valuation of promissory <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">notes and the estimated market rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%,</div> the derivative liability - warrants valuation and the valuation of deferred tax assets.&nbsp; Actual results <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>differ significantly from these estimates.</div></div></div></div></div></div></div></div></div></div> 60621170 57737834 62063832 59535637 60621170 57737834 62063832 59535637 xbrli:shares xbrli:pure iso4217:CAD xbrli:shares iso4217:USD 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Document And Entity Information - shares
9 Months Ended
Sep. 30, 2017
Nov. 14, 2017
Document Information [Line Items]    
Entity Registrant Name SHOAL GAMES LTD.  
Entity Central Index Key 0001318482  
Trading Symbol sgldf  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Entity Common Stock, Shares Outstanding (in shares)   65,048,592
Document Type 10-Q  
Document Period End Date Sep. 30, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q3  
Amendment Flag false  
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Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 818,085 $ 60,190
Accounts receivable less allowance for doubtful accounts $27,666 (December 31, 2016 - $27,666) (Note 3) 16,466 17,194
Prepaid expenses (Note 4) 34,113 33,494
Total Current Assets 868,664 110,878
Equipment, net 11,173 10,148
Security deposits 8,067
Deferred tax asset, less valuation allowance of $15,959 (December 31, 2016 - $15,017) (Note 9)
Total Assets 879,837 129,093
Current liabilities:    
Accounts payable 21,671 3,667
Accrued liabilities 89,502 87,959
Accounts payable and accrued liabilities - related party (Note 10) 11,276 5,356
Derivative liability - warrants (Note 7) 98,615
Total Current Liabilities 221,064 96,982
Promissory notes (Note 6) 480,203 347,698
Total Liabilities 701,267 444,680
Commitments (Note 8)
Stockholders' Equity (Deficiency) (Note 7):    
Common stock, no par value, unlimited shares authorized, 64,919,992 shares issued and outstanding (December 31, 2016 - 59,708,318) 23,003,127 21,223,271
Accumulated deficit (22,849,137) (21,563,438)
Foreign currency translation adjustment 24,580 24,580
Total Stockholders' Equity (Deficiency) 178,570 (315,587)
Total Liabilities and Stockholders' Equity (Deficiency) $ 879,837 $ 129,093
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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
$ / shares in Thousands
Sep. 30, 2017
Dec. 31, 2016
Allowance for doubtful accounts $ 27,666 $ 27,666
Valuation allowance for deferred tax asset $ 15,959 $ 15,017
Common stock, no par value (in dollars per share) $ 0 $ 0
Common stock, shares issued (in shares) 64,919,992 59,708,318
Common stock, shares outstanding (in shares) 64,919,992 59,708,318
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Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Total revenue $ 18,853 $ 52,758 $ 74,888 $ 241,138
Cost of sales:        
Game development amortization (Note 5) 120,503 361,510
Total cost of sales 120,503 361,510
Gross profit (loss) 18,853 (67,745) 74,888 (120,372)
Operating expenses:        
Depreciation and amortization 965 501 2,615 1,501
Directors fees 1,000 2,000 2,500 6,000
General and administrative 96,369 65,601 218,057 186,205
Promissory note accretion and interest (Note 6) 22,110 62,021
Salaries, wages, consultants and benefits 121,697 97,626 339,827 316,646
Selling and marketing 71,351 26,044 151,483 394,389
Games development (Note 5) 194,594 387,068 605,905 855,985
Total operating expenses 508,086 578,840 1,382,408 1,760,726
Loss before other income (expense) and income taxes (489,233) (646,585) (1,307,520) (1,881,098)
Other income (expense):        
Gain on derivative liability - warrants (Note 7) 24,669 24,669
Foreign exchange (loss) income 1,849 (10,759) (2,861) (31,192)
Interest and other income 5 38 13 139
Loss on prepaid development (Note 4) (498,791) (498,791)
Loss before income taxes (462,710) (1,156,097) (1,285,699) (2,410,942)
Income tax (recovery) expense 1 (8)
Net loss for the period (462,710) (1,156,098) (1,285,699) (2,410,934)
Other comprehensive income (loss) 0 0
Comprehensive loss for the period $ (462,710) $ (1,156,098) $ (1,285,699) $ (2,410,934)
Basic and diluted loss per common share (in dollars per share) $ (0.01) $ (0.02) $ (0.02) $ (0.04)
Weighted average common shares outstanding, basic (in shares) 62,063,832 59,535,637 60,621,170 57,737,834
Weighted average common shares outstanding, diluted (in shares) 62,063,832 59,535,637 60,621,170 57,737,834
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Consolidated Statements of Stockholders' Equity (Deficiency) (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($)
Common Stock [Member]
Retained Earnings [Member]
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Total
Balance (in shares) at Dec. 31, 2016 59,708,318      
Balance at Dec. 31, 2016 $ 21,223,271 $ (21,563,438) $ 24,580 $ (315,587)
Discount on promissory note 23,461 23,461
Gain on extinguishment and reissuance of promissory notes with related parties $ 94,191 94,191
Private placement, net of issuance expenses (in shares) 5,211,674      
Private placement, net of issuance expenses $ 1,785,488 1,785,488
Derivative liability - warrants (123,284) (123,284)
Net loss (1,285,699) (1,285,699)
Balance (in shares) at Sep. 30, 2017 64,919,992      
Balance at Sep. 30, 2017 $ 23,003,127 $ (22,849,137) $ 24,580 $ 178,570
XML 13 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (1,285,699) $ (2,410,934)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,615 1,501
Game development amortization 361,510
Interest on Convertible Debt, Equity Portion 62,021
Gain on derivative liability - warrants (24,669)
Changes in operating assets and liabilities:    
Accounts receivable 728 15,551
Prepaid expenses (619) (40,894)
Security deposits 8,067 (524)
Accounts payable and accrued liabilities 25,467 51,240
Net cash used in operating activities (1,212,089) (2,022,550)
Cash flows from investing activities:    
Acquisition of equipment (3,640) (5,104)
Net cash used in investing activities (3,640) (5,104)
Cash flows from financing activities:    
Proceeds from Private placement, net of issuance costs 1,785,488 1,513,354
Promissory note 188,136
Proceeds from shareholder loan 26,631
Net cash provided by financing activities 1,973,624 1,539,985
Change in cash 757,895 (487,669)
Cash, beginning of period 60,190 570,086
Cash, end of period 818,085 82,417
Supplementary information:    
Interest paid 0 0
Income taxes paid
Non-cash financing activity - Extinguishment of promissory notes 94,191
Non-cash financing activity - Discount on related party loans 23,461
Non-cash investing activity $ 0 $ 0
XML 14 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 1 - Basis of Presentation
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Business Description and Basis of Presentation [Text Block]
1.
        Basis of Presentation:
 
The accompanying unaudited financial statements have been prepared by Shoal Games Ltd. ("the Company") in confo
rmity with accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial information and with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.  In the opinion of management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation of the results of the interim periods presented.  All adjustments are of a normal recurring nature, except as otherwise noted below.  These unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended
December 31, 2016,
included in the Company's Annual Report on Form
10
-K, filed
March 31, 2017,
with the Securities and Exchange Commission.  The results of operations for the interim periods are
not
necessarily indicative of the results of operations for any other interim period or for a full fiscal year.
 
Continuing operat
ions
 
These unaudited interim consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.
  The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from operations for the quarters ended
September 30, 2017
and
2016,
and has an accumulated deficit of
$22,849,137
as at
September 30, 2017. 
This raises substantial doubt about the Company's ability to continue as a going concern.
 
In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Com
pany, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do
not
include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.
 
Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position,
and enable the timely discharge of the Company's obligations.  If management is unable to identify sources of additional cash flow in the short term, it
may
be required to further reduce or limit operations.
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Note 2 - Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
2.
Summary of significant accounting policies:
 
 
(a)
Basis of presentation:
 
These consolidated financial statem
ents have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company's subsidiaries,
 
     
Company
Registered
% Owned
Shoal Media (Canada) Inc.
British Columbia, Canada
100%
Coral Reef Marketing Inc.
Anguilla
100%
Shoal Media Inc.
Anguilla
100%
Shoal Games
(UK) Plc
United Kingdom
99%
Shoal Media (UK) Ltd.
United Kingdom
100%
Rooplay Media Ltd.
British Columbia, Canada
100%
Rooplay Media Kenya Limited
Kenya
100%
 
In addition, there are the following dormant subsidiaries; Bingo.com (Antigua) Inc., Bingo.com
(Wyoming) Inc., and Bingo Acquisition Corp.
 
During the quarter ended
March 31, 2017,
Shoal Media UK Ltd. was incorporated under the laws of England and Wales.
 
During the quarter ended
September 30, 2017,
Rooplay Media Kenya Limited was incorporated under the laws of Kenya.
 
All inter-company balances and transactions have been eliminated in the consolidated financial statements.
 
 
(b)
Use of estimates:
 
The pre
paration of consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.
 
Significant areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable, the valuation of promissory
notes and the estimated market rate of
15%,
the derivative liability - warrants valuation and the valuation of deferred tax assets.  Actual results
may
differ significantly from these estimates.
 
 
(c)
Revenue recognition:
 
Trophy Bingo and Garfield's Bing
o revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.
 
Advertising revenues,
not
generate
d in Trophy Bingo or Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.
 
Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.
 
 
(d)
Foreign currency:
 
The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency
financial statements under Statement ASC
830,
Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.
 
Gains and losses from restatement of foreign currency monetary and non-monet
ary assets and liabilities are included in net income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.
 
 
(e)
Software Development Costs:
 
Software development costs incurred in
the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing
January 1, 2014,
the Company obtained technological feasibility and amortized the capitalized software development costs over a period of
3
years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.  The Company completed the amortization of the capitalized Trophy Bingo software development expenses on
December 31, 2016.   
 
If a determination is ma
de that capitalized amounts are
not
recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company
may
be exposed to increases or decreases in revenue that could be material.
 
Total software development costs for the development of all
three
products; Rooplay, Garfield's Bingo a
nd Trophy Bingo, were
$5,541,179
as at
September 30, 2017 (
September 30, 2016 -
$4,713,621
).
 
 
(f)
New accounting pronouncements and changes in accounting policy:
 
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers and issu
ed subsequent amendments to the initial guidance in
August 2016,
March 2016,
April 2016,
and
May 2016
within ASU
2016
-
04,
ASU
2016
-
08,
ASU
2016
-
10,
ASU
2016
-
11
and ASU
2016
-
12,
respectively. The guidance in this update supersedes the revenue recognition requirements in ASC
605,
Revenue Recognition, and most industry-specific guidance throughout the Codification. Additionally, this update supersedes some cost guidance included in ASC
605
-
35,
Revenue Recognition - Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are
not
in a contract with a customer (for example, assets within the scope of ASC
360,
Property, Plant, and Equipment, and intangible assets, within the scope of ASC
350,
Intangibles - Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in this update. The standard was to be effective for the Company as of
January 1, 2017,
but in
August 2016,
the FASB delayed the effective date of the new revenue accounting standard to
January 1, 2019,
and would permit early adoption as of the original effective date. Earlier adoption is
not
otherwise permitted for public entities. An entity can apply the revenue standard retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (simplified transition method). The Company is currently assessing the impact of this update on its consolidated financial statements. The Company has
not
yet selected an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting.
 
On
April 1, 2016,
the FASB voted to defer the effective date of ASU
No.
2014
-
09,
which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that l
ease contracts with customers are a scope exception. Public business entities
may
elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after
December 15, 2017.
We are currently assessing the impact of the guidance on our consolidated financial statements.
 
In
January 2016,
the FASB issued ASU
2016
-
01,
Financial Instruments - Overall (Subtopic
825
-
10
): Recognition and Measurement of Financial
Assets and Financial Liabilities ("ASU
2016
-
01"
), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity
may
choose to measure equity investments that do
not
have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU
2016
-
01
also impacts the presentation and disclosure requirements for financial instruments. ASU
2016
-
01
is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after
December 15, 2017.
Early adoption is permitted only for certain provisions. The Company does
not
expect that the adoption of ASU
2016
-
01
will have a material effect on its consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
No.
2016
-
02,
Leases (Topic
842
), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of mor
e than
12
months. Lessees are permitted to make an accounting policy election to
not
recognize the asset and liability for leases with a term of
twelve
months or less. The ASU does
not
significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after
December 15, 2018,
and interim periods within those years, with early adoption permitted. Management is evaluating the requirements of this guidance and has
not
yet determined the impact of the adoption on the Company's financial position or results of operations.
 
In
June 2016,
the FASB issued ASU
No.
2016
-
13,
"Finan
cial Instruments - Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments". The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU
No.
2016
-
13
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2019.
Early adoption is permitted for fiscal years, and interim periods within those years, beginning after
December 15, 2018.
The Company is currently evaluating the impact of ASU
No.
2016
-
13
on its financial position, results of operations and liquidity.
 
In
August 2016,
the FASB issued ASU
No.
2016
-
15,
"Statement of Cash Flows (Topic
230
)". The new guidance is intended to reduce diversity in practi
ce in how certain transactions are classified in the statement of cash flows. ASU
No.
2016
-
15
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2017.
Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU
No.
2016
-
15
on its financial position, results of operations and liquidity.
 
In
October
2016,
the Financial Accounting Standards Board ("FASB") issued ASU
No.
2016
-
16,
Income Taxes (Topic
740
). The standard improves the accounting for income tax consequences of intra-entry transfers of assets other than inventory. This pronouncement is effective for annual reporting periods beginning after
December 15, 2017.
The amendments in this ASU should be applied using a modified retrospective approach. The Company is currently evaluating the impact of ASU
No.
2016
-
16
on its financial position, results of operations and liquidity.
 
In
May 2017,
the FASB issued ASU
2017
-
09,
Compensation - Stock Compensation (Topic
718
): Scope of Modification Accounting.
 The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic
718.
 This pronouncement is effective for annual reporting periods beginning after
December 15, 2017
but early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance.
 
There have been
no
other recent accounting standards, or changes in accounting standards, during the quarter ended
September 30, 2017,
as compared to the recent accounting standards described in the Annual Report, that are of materia
l significance, or have potential material significance, to us.
 
 
(g)
Financial instruments:
 
(i)
Fair values:
 
The fair value of accounts receivable, accounts payable, accrued liabilities, promissory notes and accounts payable and accrued liabilities - re
lated party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level
1
fair value measurement.
 
In general, fair values determined by Level
1
inputs utilize
quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level
2
inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level
3
inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level
1
inputs. Derivative liability - warrants was measured using Level
2
inputs.
 
 
(ii)
Foreign currency risk:
 
The Company operates internationally, which gives rise to the risk that cash flows
may
be adversely impacted by exchange rate fluctuations.
  The Company has
not
entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.
XML 16 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Accounts Receivable
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
3.
   Accounts Receivable:
 
The accounts receivable as at
September 30, 2017,
is summarized as follows:
 
   
September
30, 2017
   
December
31, 2016
 
Accounts receivable
  $
44,132
    $
44,860
 
                 
Provision for doubtful accounts
   
(27,666
)    
(27,666
)
                 
Net accounts receivable
  $
16,466
    $
17,194
 
 
The Company had bank accounts with the National Bank of Anguilla. During the year ended
December 31, 2016,
the National Bank of Anguilla, filed for chapter
11
protection and accordingly the Company expensed the
balance on account of
$27,666
as a doubtful debt during fiscal
2016.
XML 17 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4 - Prepaid Expenses
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Prepaid Assets [Text Block]
4.
Prepaid expenses
 
During the quarter ended
June 30, 2016,
the Company prepaid
$863,660
for future development expenses for Trophy Bingo and Garfield's Bingo. During the quarter ended
September 30, 2016,
$332,125
(
June 30, 2016,
$32,744
) was expensed. As at
August 31, 2016,
Roadhouse Interactive Limited, the developer of Trophy Bingo and Garfield's Bingo was placed in receivership, resulting in a loss of
$498,791
on prepaid development.
 
The Company has other prepaid expenses of
$14,888
(
December 31, 2016 - $
25,659
) as at
September 30, 2017.
The Company has prepaid for future licenses fees of
$19,225
(
December 31, 2016 -
$7,835
) as at
September 30, 2017.
XML 18 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Game Development Assets
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Other Assets Disclosure [Text Block]
5.
Game development assets:
 
During the year ended
December 31, 2012,
the Company commenced development of a social bingo game, Trophy Bingo. During the year ended
December 31,
20
14,
the Company soft launched Trophy Bingo. The Company ceased to capitalize the development costs and commenced the amortization of the capitalized development costs over a period of
three
years. As at
December 31, 2016,
the capitalized development costs were amortized in full.
 
During the year ended
December 31, 2016,
the Company obtained the license to develop Garfield's Bingo. The game was launched in
November 2016.
In addition, during the year ended
December 31, 2016,
the Company obtained Rooplay. The C
ompany commenced development of the Rooplay platform. During the period ended
September 30, 2017,
the Company has expensed the development costs of all
three
products as incurred and has expensed the following development costs for its
three
products.
 
   
Nine
Months
ended
September
30, 2017
   
Nine
Months
ended
September
30, 2016
   
Three
Months
ended
September
30, 2017
   
Three
Months
ended
September
30, 2016
 
                                 
Opening total development costs
  $
4,935,274
    $
3,857,636
    $
5,346,585
    $
4,326,553
 
                                 
Development during the period
   
605,905
     
855,985
     
194,594
     
387,068
 
Closing total development costs
  $
5,541,179
    $
4,713,621
    $
5,541,179
    $
4,713,621
 
XML 19 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Promissory Notes
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Debt Disclosure [Text Block]
6.
  Promissory notes:
 
The Company has issued unsecured promissory notes from shareholders of the Company. The notes were repayable on
March 31,
2018.
The interest on the notes are
2%
per annum, calculated and compounded annually and paid annually.  Interest in arrears shall accrue interest. The unpaid principal amount due hereunder
may
be reduced to
zero
from time to time without affecting the validity of this note.
 
The promissory notes are accounted for by discounting the notes in a manner that reflects the entity's borrowing rate when interest cost is recognized in subsequent periods. The Company applied an estimated market rate of
15%
to the pr
omissory notes. In doing so, the Company used the discounted cash flow approach to value the present value of the notes. The cash flow stream from the coupon interest payments and the final principal payment were discounted at
15%
to arrive at the valuations. The Company used a deemed rate of
15%
as the appropriate discount rate after examining the interest rates for similar instruments issued in the same time frame for similar companies without the conversion feature. During the year ended
December 31, 2016,
the Company issued
$400,000
promissory notes and recognized a discount on the promissory notes of
$58,284
and
$5,171
of interest accretion.
 
During the quarter ended
March 31, 2017,
the Company issued
$188,136
promissory notes and recognized a discount o
n the promissory notes of
$23,461.
The Company recognized interest accretion of
$53,698
for the
nine
months ended
September 30, 2017
and
$19,145
for the quarter ended
September 30, 2017.
 
These notes were issued with the same terms and conditions as the pr
omissory notes issued in the year ended
December 31, 2016.
 
On
March 31, 2017,
the maturity date on the promissory notes was extended to
April 1, 2020.
The Company treated the change as an extinguishment and reissuance of the notes. The Company recognized a
discount on the promissory notes of
$94,191
from the extinguishment and reissuance of the notes.
 
   
September
30, 2017
   
December
31, 2016
 
Opening balance
  $
347,698
    $
-
 
                 
Promissory note issued
   
188,136
     
400,000
 
                 
Discount on
promissory note
   
(23,461
)    
(58,284
)
                 
Gain on extinguishment and reissuance of promissory notes with related parties
   
(94,191
)    
-
 
                 
Extinguishment of promissory notes to related parties
   
(418,181
)    
-
 
                 
Reissuance of
promissory notes to related parties
   
418,181
     
-
 
                 
Accrued interest
   
8,323
     
811
 
                 
Interest accretion
   
53,698
     
5,171
 
                 
Closing balance
  $
480,203
    $
347,698
 
XML 20 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency)
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
7.
    Stockholders' Equity (Deficiency):
 
The holders of common stock are entitled to
one
vote for each share held.
  There are
no
restrictions that limit the Company's ability to pay dividends on its common stock.  The Company has
not
declared any dividends since incorporation.  The Company's common stock has
no
par value per common stock.
 
(a)
        Common stock issuances:
 
September 2017
 
During the quarter ended
September 30, 2017,
the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling
$999,760
(
$1,010,763
less issuance costs of
$11,003
). The private placement consisted of
2,887
,895
units priced at
$0.35
per unit. Each Unit was comprised of
one
common share and
one
share purchase warrant.  Each share purchase warrant is exercisable into
one
common share of the Company for
12
months following closing.  The exercise price of the warrants is
$0.44
per share for the
first
six
months following closing and
$0.52
per share for the period which is
7
-
12
months following closing.
 
June 2017
 
During the quarter ended
June 30, 2017,
the Company closed a TSX Venture Exchange approved non-broker
ed private placement financing totaling
CAD$1.045
million (
$790,281
less issuance costs of
$4,553
). The private placement consisted of
2,323,779
units priced at
CAD$0.45
(
$0.34
) per unit. Each Unit was comprised of
one
common share and
one
share purchase warrant.  Each share purchase warrant is exercisable into
one
common share of the Company for
12
months following closing.  The exercise price of the warrants is Canadian
$0.55
per share for the
first
six
months following closing and Canadian
$0.65
per share for the period which is
7
-
12
months following closing.
 
The warrants have an exercise price in Canadian dollars whilst the Company's functional currency is US Dollars. Therefore, in accordance with ASU
815
- Derivatives and Hedging, the warrants have a d
erivative liability value. This liability value has
no
effect on the cashflow of the Company and does
not
represent a cash payment of any kind.
 
During the quarter ended
June 30, 2017,
the fair value of derivative liability of
$123,284
has been estimated o
n the date of the subscription using the Binomial Lattice pricing model. During the quarter ended
September 30, 2017,
there was a gain on derivative liability - warrants of
$24,669
and the derivative liability - warrants value reduced to
$98,615
with the following assumptions:
 
   
September
30, 2017
   
June 30,
2017
 
Average stock price (CAD)
   
CAD$0.60
     
CAD$0.64
 
Expected dividend yield
   
-
     
-
 
Expected stock price volatility
   
32.7
%    
33
%
Risk-free interest rate
   
1.51
%    
0.71
%
Expected life of warrants (in years)
   
1
     
1
 
 
The average stock price is calculated on the probability weighted average price of the exercise of the warrants.
 
October 2017
 
Subsequent to the quarter ended
September 30, 2017,
the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling
$44,797
(
$45,010
less issuance costs of
$213
). The private placement consisted of
128,600
units priced
at
$0.35
per unit. Each Unit was comprised of
one
common share and
one
share purchase warrant.  Each share purchase warrant is exercisable into
one
common share of the Company for
12
months following closing.  The exercise price of the warrants is
$0.44
per share for the
first
six
months following closing and
$0.52
per share for the period which is
7
-
12
months following closing.
 
(b)
        Stock option plans:
 
No
options were granted or exercised during the period ended
September 30, 2017.
During the quarte
r ended
September 30, 2017,
60,000
options were cancelled and expired unexercised.
 
   
Number of
options
   
Weighted average
exercise price
 
Outstanding and exercisable, December 31, 2015
   
-
    $
-
 
                 
Granted
   
1,010,000
     
0.42
 
Exercised
   
-
     
-
 
                 
Outstanding, December 31, 2016
   
1,010,000
     
0.42
 
                 
Granted
   
-
     
-
 
Expired
   
(130,000
)    
(0.42
)
Exercised
   
-
     
-
 
                 
Outstanding, September 30, 2017
   
880,000
     
0.42
 
 
The fair value of each option grant has been estimated on
the date of the grant using the Black-Scholes option-pricing model with the following assumptions:
 
   
September
30, 2017
   
December
31, 2016
 
Exercise price
   
-
     
CAD$0.54
 
Expiry date
   
-
   
December 21, 2021
 
Expected dividend yield
   
-
     
-
 
Expected stock price volatility
   
-
     
78
%
Weighted average volatility
   
-
     
78
%
Risk-free interest rate
   
-
     
1.9
%
Expected life of options (in years)
   
-
     
5
 
Forfeiture rate
   
-
     
0
%
Intrinsic value
  $
42,357
    $
0
 
XML 21 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Commitments
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
8.
   Commitments:
 
The Company leases office facilities in Vancouver, British Columbia, Canada, and The Vall
ey, Anguilla, British West Indies. These office facilities are leased under operating lease agreements. The Canadian operating lease expired on
December 31, 2016,
but unless
30
day notice is given this lease automatically renews on a month to month basis until notice is given. The Anguillan operating lease expired on
April 1, 2011
but unless
3
month's notice is given it automatically renews for a future
3
months until notice is given.
 
Minimum lease payments under these operating leases are approximately as
follows:
 
         
2017
  $
1,486
 
2018
   
-
 
         
 
The Company paid rent expense totaling
$4,895
for the quarter ended
September 30, 2017 (
September 30, 2016 -
$7,669
).
 
 
The Company has a management consulting agreement with T.M. Williams (Row), Inc., an
Anguilla incorporated company, and Mr. T. M. Williams. During the year ended
December 31, 2014,
the Company amended a previous agreement with Mr. T. M. Williams to provide for a consultancy payment of
2.5%
of the monthly social bingo business with a minimum of
$11,000
and a maximum of
$25,000
per month.
 
During the year ended
December 31, 2014,
the Company entered into an agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of the Company for the provision of services of Mr.
J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of Pound Sterling
5,000
per month. In addition, during the year ended
December 31, 2014,
the Company entered into an agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of
2.5%
of the monthly social bingo business with a minimum of
$7,500
and a maximum of
$25,000
per month.
 
During the year ended
December 31, 2016,
the Company signed a licensing agreement with Paws, Inc. for the license for Garfield's Bingo expiring on
June 30, 2019.
During the quarter ended
June 30, 2017,
the Company sign
ed a licensing agreement with Paws, Inc. for the license of Garfield games in Rooplay expiring on
December 31, 2019.
During the quarter ended
June 30, 2017,
the Company signed a licensing agreement with Bulls Presstjanst AB for the license of Moomin games in Rooplay expiring on
December 31, 2020.
During the quarter ended
June 30, 2017,
the Company signed a licensing agreement with Mister Men Limited for the license of Mr. Men and Little Miss games in Rooplay expiring on
April 15, 2020.
During the quarter ended
September 30, 2017,
the Company signed a licensing agreement with Endemol Shine Group BV for the license of Mr. Bean Animation Series games in Rooplay expiring on
September 30, 2020.
Subsequent to the quarter ended
September 30, 2017,
the Company signed a licensing agreement with Rainbow SRL for the license of the Winx club games in Rooplay expiring on
August 31, 2020.
These agreements have commitments to pay royalties on the revenue of the products subject to minimum payments.
XML 22 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Income Taxes
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
9.
   Income Taxes:
 
Shoal Games Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British
West Indies. However certain of the Company's subsidiaries incur income taxation.
 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at
September 30, 2017,
and
December 3
1,
2016,
are presented below:
 
   
September
30, 2017
   
December
31, 2016
 
Deferred tax assets:
               
Net operating loss carry forwards
  $
15,959
    $
15,017
 
                 
Valuation Allowance
   
(15,959
)    
(15,017
)
    $ -     $ -  
 
In assessing the
realizability of deferred tax assets, management considers whether it is more likely than
not
that some portion or all of the deferred tax assets will
not
be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those differences become deductible.
 
Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing the realizability of defer
red tax assets. 
 
Subsequent to the quarter ended
September 30, 2017,
Shoal Media (Canada) Inc., a subsidiary of Shoal Games Ltd., received the British Columbia Interactive Digital Media Tax Credit of
CAD$39,919
for the year ended
December 31, 2016
from th
e British Columbia Provincial Government. The Company recognizes the revenue from this tax credit upon receipt of funds.
XML 23 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Related Party Transactions
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]
10.
Related Party Transactions:
 
The Company has a liability of
$nil
(
December 31, 2016 -
$nil
) to a company owned by a current director and officer of the Company for payment of services rendered of
$33,000
(
September 30, 2016 -
$33,000
) by the current director and officer of the Company.
 
The Company has a liability of
$804
(
December 31, 2016 -
$2
) to a current director and officer of the Company for expenses incurred.
 
The Company has a liability of
$nil
(
Dec
ember
31,
2016
-
$nil
) to a company owned by a current director and officer of the Company for payment of services rendered of
$19,638
(
September 30, 2016 -
$19,676
) by the current director and officer of the Company.
 
The Company has a liability of
$nil
(D
ecember
31,
2016
-
$nil
) to a company owned by a current director and officer of the Company for payment of services rendered of
$22,500
(
September 30, 2016 -
$22,500
) by the current director and officer of the Company.
 
The Company has a liability of
$3,00
0
(
December 31, 2016 -
$500
), to independent directors of the Company for payment of services rendered. During the quarter ended
September 30, 2017,
the Company accrued
$1,000
(
September 30, 2016 -
$2,000
) to the independent directors in director fees.
 
Th
e Company has a liability of
$7,472
(
December 31, 2016 -
$4,852
), to an officer of the Company for payment of services rendered and expenses incurred of
$23,447
(
September 30, 2016 -
$13,658
) by the officer of the Company.
 
The Company has a liability of $
nil
(
December 31, 2016 -
$2
), to a Company owned by a previous director of the Company for payment of consulting fees of
$nil
(
September 30, 2016 -
$4,985
) by the previous director of the Company.
 
The Company has promissory notes totaling
$597,270
(Decem
ber
31,
2016,
$400,811
), including interest, from shareholders holding more than
10%
of the Company. The interest on the notes are
2%
per annum, calculated and compounded annually and paid annually.
 
During the quarter ended
June 30, 2017,
the directors an
d shareholders holding more than
10%
of the Company's shares subscribed for
1,200,000
units totaling
CAD$540,000
(
$408,102
) in the private placement.
 
The related party transactions are in the normal course of operations and were measured at the exchange a
mount, which is the amount of consideration established and agreed to by the related party.
XML 24 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Segmented Information
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
11.
Segmented information:
 
Revenue
 
The Company operates in
one
reportable business segment, the net revenue from Trophy Bingo and Garfield's Bingo and Rooplay.
 
The Company had the following revenue by geographical region.
 
   
Nine
Months
ended
September
30, 2017
   
Nine
Months
ended
September
30, 2016
   
Three
Months
ended
September
30, 2017
   
Three
Months
ended
September
30, 2016
 
Total revenue
     
 
     
 
     
 
 
Western Europe
  $
8,127
    $
29,519
    $
2,216
    $
5,421
 
Central, Eastern and
Southern Europe
   
376
     
63
     
16
     
36
 
Nordics
   
489
     
803
     
134
     
161
 
North America
   
52,536
     
194,025
     
12,758
     
40,217
 
Other
   
13,360
     
16,728
     
3,729
     
6,923
 
Total revenue
  $
74,888
    $
241,138
    $
18,853
    $
52,758
 
 
Equipment
 
The
Company's equipment is located as follows:
 
Net Book Value
 
September
30, 2017
   
December
31, 2016
 
                 
Anguilla
  $
621
    $
828
 
Canada
   
9,635
     
8,097
 
United Kingdom
   
917
     
1,223
 
    $
11,173
    $
10,148
 
XML 25 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 12 - Concentrations
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
12.
       Concentrations
 
Major customers
 
During the quarter ended
September 30, 2017
and
2016,
the Company sold subscriptions on its site Rooplay and sold in-app purchases on its social bingo sites, Trophy Bingo and Garfield's Bingo. There was
no
single player who had purchased more than
10%
of
the Rooplay, Trophy Bingo and Garfield's Bingo revenue. The Company is reliant on the Google App, iOS App and Amazon App Stores to provide a platform for Rooplay, Trophy Bingo and Garfield's Bingo to be played thereon.
 
During the quarter ended
September 30
,
2017
and
2016,
the Company offered limited advertising. The Company is reliant on
one
sales customer who provides the advertising revenue.  
XML 26 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 13 - Concentrations of Credit Risk
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Concentration Credit Risk [Text Block]
13.
  Concentrations of Credit Risk:
 
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable.
  The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any
one
institution.
 
The Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions.
At
September 30, 2017,
the Company had total cash balances of
$818,085
(
December 31, 2016 -
$60,190
) at financial institutions, where
$612,699
(
December 31, 2016 -
$nil
) is in excess of federally insured limits.
 
The Company has concentrations of credit ri
sk with respect to accounts receivable, the majority of its accounts receivable are concentrated geographically in the United States amongst a small number of customers.
 
As of
September 30, 2017,
the Company had
four
customers, totaling
$9,691
who accounte
d for greater than
10%
of the total accounts receivable. As of
December 31, 2016,
the Company had
four
customers, totaling
$13,300
who accounted for greater than
10%
of the total accounts receivable.
 
The Company controls credit risk through monitoring proc
edures and receiving prepayments of cash for services rendered.  The Company performs credit evaluations of its customers but generally does
not
require collateral to secure accounts receivable.
XML 27 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
(a)
Basis of presentation:
 
These consolidated financial statem
ents have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United States Securities and Exchange Commission. The financial statements include the accounts of the Company's subsidiaries,
 
     
Company
Registered
% Owned
Shoal Media (Canada) Inc.
British Columbia, Canada
100%
Coral Reef Marketing Inc.
Anguilla
100%
Shoal Media Inc.
Anguilla
100%
Shoal Games
(UK) Plc
United Kingdom
99%
Shoal Media (UK) Ltd.
United Kingdom
100%
Rooplay Media Ltd.
British Columbia, Canada
100%
Rooplay Media Kenya Limited
Kenya
100%
 
In addition, there are the following dormant subsidiaries; Bingo.com (Antigua) Inc., Bingo.com
(Wyoming) Inc., and Bingo Acquisition Corp.
 
During the quarter ended
March 31, 2017,
Shoal Media UK Ltd. was incorporated under the laws of England and Wales.
 
During the quarter ended
September 30, 2017,
Rooplay Media Kenya Limited was incorporated under the laws of Kenya.
 
All inter-company balances and transactions have been eliminated in the consolidated financial statements.
Use of Estimates, Policy [Policy Text Block]
(b)
Use of estimates:
 
The pre
paration of consolidated financial statements in conformity with US GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and recognized revenues and expenses for the reporting periods.
 
Significant areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable, the valuation of promissory
notes and the estimated market rate of
15%,
the derivative liability - warrants valuation and the valuation of deferred tax assets.  Actual results
may
differ significantly from these estimates.
Revenue Recognition Accounting Policy, Gross and Net Revenue Disclosure [Policy Text Block]
(c)
Revenue recognition:
 
Trophy Bingo and Garfield's Bing
o revenues have been recognized from the sale of in-game purchases, net of platform fees, at the time of purchase by the player. The revenue from in-game advertising is recognized when advertising is served to the player.
 
Advertising revenues,
not
generate
d in Trophy Bingo or Garfield's Bingo, have been recognized when collection of the amounts are reasonably assured.
 
Rooplay revenues have been recognized when collection of the subscriptions are reasonably assured and the provision of service has occurred.
Foreign Currency Transactions and Translations Policy [Policy Text Block]
(d)
Foreign currency:
 
The consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries. The Company accounts for foreign currency transactions and translation of foreign currency
financial statements under Statement ASC
830,
Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date. Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.
 
Gains and losses from restatement of foreign currency monetary and non-monet
ary assets and liabilities are included in net income. Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.
Internal Use Software, Policy [Policy Text Block]
(e)
Software Development Costs:
 
Software development costs incurred in
the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for the related product. Commencing
January 1, 2014,
the Company obtained technological feasibility and amortized the capitalized software development costs over a period of
3
years. The Company performs an annual review of the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.  The Company completed the amortization of the capitalized Trophy Bingo software development expenses on
December 31, 2016.   
 
If a determination is ma
de that capitalized amounts are
not
recoverable based on the estimated cash flows to be generated from the applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates and judgments as described herein is reasonable, actual results could differ and the Company
may
be exposed to increases or decreases in revenue that could be material.
 
Total software development costs for the development of all
three
products; Rooplay, Garfield's Bingo a
nd Trophy Bingo, were
$5,541,179
as at
September 30, 2017 (
September 30, 2016 -
$4,713,621
).
New Accounting Pronouncements, Policy [Policy Text Block]
(f)
New accounting pronouncements and changes in accounting policy:
 
In
May 2014,
the FASB issued ASU
No.
2014
-
09,
Revenue from Contracts with Customers and issu
ed subsequent amendments to the initial guidance in
August 2016,
March 2016,
April 2016,
and
May 2016
within ASU
2016
-
04,
ASU
2016
-
08,
ASU
2016
-
10,
ASU
2016
-
11
and ASU
2016
-
12,
respectively. The guidance in this update supersedes the revenue recognition requirements in ASC
605,
Revenue Recognition, and most industry-specific guidance throughout the Codification. Additionally, this update supersedes some cost guidance included in ASC
605
-
35,
Revenue Recognition - Construction-Type and Production-Type Contracts. In addition, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are
not
in a contract with a customer (for example, assets within the scope of ASC
360,
Property, Plant, and Equipment, and intangible assets, within the scope of ASC
350,
Intangibles - Goodwill and Other) are amended to be consistent with the guidance on recognition and measurement in this update. The standard was to be effective for the Company as of
January 1, 2017,
but in
August 2016,
the FASB delayed the effective date of the new revenue accounting standard to
January 1, 2019,
and would permit early adoption as of the original effective date. Earlier adoption is
not
otherwise permitted for public entities. An entity can apply the revenue standard retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings (simplified transition method). The Company is currently assessing the impact of this update on its consolidated financial statements. The Company has
not
yet selected an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting.
 
On
April 1, 2016,
the FASB voted to defer the effective date of ASU
No.
2014
-
09,
which outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and notes that l
ease contracts with customers are a scope exception. Public business entities
may
elect to adopt the amendments as of the original effective date; however, if the proposed deferral is approved, adoption is required for annual reporting periods beginning after
December 15, 2017.
We are currently assessing the impact of the guidance on our consolidated financial statements.
 
In
January 2016,
the FASB issued ASU
2016
-
01,
Financial Instruments - Overall (Subtopic
825
-
10
): Recognition and Measurement of Financial
Assets and Financial Liabilities ("ASU
2016
-
01"
), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity
may
choose to measure equity investments that do
not
have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU
2016
-
01
also impacts the presentation and disclosure requirements for financial instruments. ASU
2016
-
01
is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after
December 15, 2017.
Early adoption is permitted only for certain provisions. The Company does
not
expect that the adoption of ASU
2016
-
01
will have a material effect on its consolidated financial statements.
 
In
February 2016,
the FASB issued ASU
No.
2016
-
02,
Leases (Topic
842
), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of mor
e than
12
months. Lessees are permitted to make an accounting policy election to
not
recognize the asset and liability for leases with a term of
twelve
months or less. The ASU does
not
significantly change the lessees' recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after
December 15, 2018,
and interim periods within those years, with early adoption permitted. Management is evaluating the requirements of this guidance and has
not
yet determined the impact of the adoption on the Company's financial position or results of operations.
 
In
June 2016,
the FASB issued ASU
No.
2016
-
13,
"Finan
cial Instruments - Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments". The accounting standard changes the methodology for measuring credit losses on financial instruments and the timing when such losses are recorded. ASU
No.
2016
-
13
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2019.
Early adoption is permitted for fiscal years, and interim periods within those years, beginning after
December 15, 2018.
The Company is currently evaluating the impact of ASU
No.
2016
-
13
on its financial position, results of operations and liquidity.
 
In
August 2016,
the FASB issued ASU
No.
2016
-
15,
"Statement of Cash Flows (Topic
230
)". The new guidance is intended to reduce diversity in practi
ce in how certain transactions are classified in the statement of cash flows. ASU
No.
2016
-
15
is effective for fiscal years, and interim periods within those years, beginning after
December 15, 2017.
Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently evaluating the impact of ASU
No.
2016
-
15
on its financial position, results of operations and liquidity.
 
In
October
2016,
the Financial Accounting Standards Board ("FASB") issued ASU
No.
2016
-
16,
Income Taxes (Topic
740
). The standard improves the accounting for income tax consequences of intra-entry transfers of assets other than inventory. This pronouncement is effective for annual reporting periods beginning after
December 15, 2017.
The amendments in this ASU should be applied using a modified retrospective approach. The Company is currently evaluating the impact of ASU
No.
2016
-
16
on its financial position, results of operations and liquidity.
 
In
May 2017,
the FASB issued ASU
2017
-
09,
Compensation - Stock Compensation (Topic
718
): Scope of Modification Accounting.
 The new standard provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic
718.
 This pronouncement is effective for annual reporting periods beginning after
December 15, 2017
but early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance.
 
There have been
no
other recent accounting standards, or changes in accounting standards, during the quarter ended
September 30, 2017,
as compared to the recent accounting standards described in the Annual Report, that are of materia
l significance, or have potential material significance, to us.
Fair Value of Financial Instruments, Policy [Policy Text Block]
(g)
Financial instruments:
 
(i)
Fair values:
 
The fair value of accounts receivable, accounts payable, accrued liabilities, promissory notes and accounts payable and accrued liabilities - re
lated party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash is carried at fair value using a level
1
fair value measurement.
 
In general, fair values determined by Level
1
inputs utilize
quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level
2
inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level
3
inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level
1
inputs. Derivative liability - warrants was measured using Level
2
inputs.
 
 
(ii)
Foreign currency risk:
 
The Company operates internationally, which gives rise to the risk that cash flows
may
be adversely impacted by exchange rate fluctuations.
  The Company has
not
entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange risk.
XML 28 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Consolidation, Wholly Owned and Less than Wholly Owned Subsidiary, Parent Ownership Interest [Table Text Block]
     
Company
Registered
% Owned
Shoal Media (Canada) Inc.
British Columbia, Canada
100%
Coral Reef Marketing Inc.
Anguilla
100%
Shoal Media Inc.
Anguilla
100%
Shoal Games
(UK) Plc
United Kingdom
99%
Shoal Media (UK) Ltd.
United Kingdom
100%
Rooplay Media Ltd.
British Columbia, Canada
100%
Rooplay Media Kenya Limited
Kenya
100%
XML 29 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Accounts Receivable (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
   
September
30, 2017
   
December
31, 2016
 
Accounts receivable
  $
44,132
    $
44,860
 
                 
Provision for doubtful accounts
   
(27,666
)    
(27,666
)
                 
Net accounts receivable
  $
16,466
    $
17,194
 
XML 30 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Game Development Assets (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Expense of Development Costs [Table Text Block]
   
Nine
Months
ended
September
30, 2017
   
Nine
Months
ended
September
30, 2016
   
Three
Months
ended
September
30, 2017
   
Three
Months
ended
September
30, 2016
 
                                 
Opening total development costs
  $
4,935,274
    $
3,857,636
    $
5,346,585
    $
4,326,553
 
                                 
Development during the period
   
605,905
     
855,985
     
194,594
     
387,068
 
Closing total development costs
  $
5,541,179
    $
4,713,621
    $
5,541,179
    $
4,713,621
 
XML 31 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Promissory Notes (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Schedule of Long-term Debt Instruments [Table Text Block]
   
September
30, 2017
   
December
31, 2016
 
Opening balance
  $
347,698
    $
-
 
                 
Promissory note issued
   
188,136
     
400,000
 
                 
Discount on
promissory note
   
(23,461
)    
(58,284
)
                 
Gain on extinguishment and reissuance of promissory notes with related parties
   
(94,191
)    
-
 
                 
Extinguishment of promissory notes to related parties
   
(418,181
)    
-
 
                 
Reissuance of
promissory notes to related parties
   
418,181
     
-
 
                 
Accrued interest
   
8,323
     
811
 
                 
Interest accretion
   
53,698
     
5,171
 
                 
Closing balance
  $
480,203
    $
347,698
 
XML 32 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency) (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
   
September
30, 2017
   
June 30,
2017
 
Average stock price (CAD)
   
CAD$0.60
     
CAD$0.64
 
Expected dividend yield
   
-
     
-
 
Expected stock price volatility
   
32.7
%    
33
%
Risk-free interest rate
   
1.51
%    
0.71
%
Expected life of warrants (in years)
   
1
     
1
 
Share-based Compensation, Stock Options, Activity [Table Text Block]
   
Number of
options
   
Weighted average
exercise price
 
Outstanding and exercisable, December 31, 2015
   
-
    $
-
 
                 
Granted
   
1,010,000
     
0.42
 
Exercised
   
-
     
-
 
                 
Outstanding, December 31, 2016
   
1,010,000
     
0.42
 
                 
Granted
   
-
     
-
 
Expired
   
(130,000
)    
(0.42
)
Exercised
   
-
     
-
 
                 
Outstanding, September 30, 2017
   
880,000
     
0.42
 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
   
September
30, 2017
   
December
31, 2016
 
Exercise price
   
-
     
CAD$0.54
 
Expiry date
   
-
   
December 21, 2021
 
Expected dividend yield
   
-
     
-
 
Expected stock price volatility
   
-
     
78
%
Weighted average volatility
   
-
     
78
%
Risk-free interest rate
   
-
     
1.9
%
Expected life of options (in years)
   
-
     
5
 
Forfeiture rate
   
-
     
0
%
Intrinsic value
  $
42,357
    $
0
 
XML 33 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Commitments (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
         
2017
  $
1,486
 
2018
   
-
 
         
XML 34 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Income Taxes (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
   
September
30, 2017
   
December
31, 2016
 
Deferred tax assets:
               
Net operating loss carry forwards
  $
15,959
    $
15,017
 
                 
Valuation Allowance
   
(15,959
)    
(15,017
)
    $ -     $ -  
XML 35 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Segmented Information (Tables)
9 Months Ended
Sep. 30, 2017
Notes Tables  
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]
   
Nine
Months
ended
September
30, 2017
   
Nine
Months
ended
September
30, 2016
   
Three
Months
ended
September
30, 2017
   
Three
Months
ended
September
30, 2016
 
Total revenue
     
 
     
 
     
 
 
Western Europe
  $
8,127
    $
29,519
    $
2,216
    $
5,421
 
Central, Eastern and
Southern Europe
   
376
     
63
     
16
     
36
 
Nordics
   
489
     
803
     
134
     
161
 
North America
   
52,536
     
194,025
     
12,758
     
40,217
 
Other
   
13,360
     
16,728
     
3,729
     
6,923
 
Total revenue
  $
74,888
    $
241,138
    $
18,853
    $
52,758
 
Long-lived Assets by Geographic Areas [Table Text Block]
Net Book Value
 
September
30, 2017
   
December
31, 2016
 
                 
Anguilla
  $
621
    $
828
 
Canada
   
9,635
     
8,097
 
United Kingdom
   
917
     
1,223
 
    $
11,173
    $
10,148
 
XML 36 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 1 - Basis of Presentation (Details Textual) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Retained Earnings (Accumulated Deficit) $ (22,849,137) $ (21,563,438)
XML 37 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)
9 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Dec. 31, 2015
Accumulated Development Costs $ 5,541,179 $ 5,346,585 $ 4,935,274 $ 4,713,621 $ 4,326,553 $ 3,857,636
Software Development [Member]            
Property, Plant and Equipment, Useful Life 3 years          
Promissory Note [Member] | Income Approach Valuation Technique [Member]            
Fair Value Inputs, Discount Rate 15.00%          
XML 38 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Summary of Significant Accounting Policies - Subsidiaries (Details)
Sep. 30, 2017
Shoal Media (Canada) Inc. [Member]  
Ownership percentage 100.00%
Coral Reef Marketing Inc. [Member]  
Ownership percentage 100.00%
Shoal Media Inc. [Member]  
Ownership percentage 100.00%
Shoal Games (UK) PLC [Member]  
Ownership percentage 99.00%
Shoal Media (UK) Ltd. [Member]  
Ownership percentage 100.00%
Rooplay Media Ltd. [Member]  
Ownership percentage 100.00%
Rooplay Media Kenya Limited [Member]  
Ownership percentage 100.00%
XML 39 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Accounts Receivable (Details Textual)
12 Months Ended
Dec. 31, 2016
USD ($)
Provision for Doubtful Accounts $ 27,666
XML 40 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Accounts Receivable - Accounts Receivable (Details) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Accounts receivable $ 44,132 $ 44,860
Provision for doubtful accounts (27,666) (27,666)
Net accounts receivable $ 16,466 $ 17,194
XML 41 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4 - Prepaid Expenses (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Future Development Expenses     $ 863,660      
Research and Development in Process   $ 332,125 $ 32,744      
Income (Loss) on Prepaid Development $ (498,791)   $ (498,791)  
Prepaid Expense and Other Assets 14,888     14,888   $ 25,659
Prepaid Licenses Fees $ 19,225     $ 19,225   $ 7,835
XML 42 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Game Development Assets - Development Costs (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Opening total development costs $ 5,346,585 $ 4,326,553 $ 4,935,274 $ 3,857,636
Games development (Note 5) 194,594 387,068 605,905 855,985
Closing total development costs $ 5,541,179 $ 4,713,621 $ 5,541,179 $ 4,713,621
XML 43 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Promissory Notes (Details Textual) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Mar. 31, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Proceeds from Notes Payable       $ 188,136  
Interest on Convertible Debt, Equity Portion $ 22,110   62,021  
Gain on Extinguishment and Reissuance of Promissory Notes With Related Party       $ 94,191    
Promissory Note [Member]            
Debt Instrument, Interest Rate, Stated Percentage 2.00%     2.00%    
Proceeds from Notes Payable   $ 188,136   $ 188,136   $ 400,000
Debt Instrument Carrying Amount of The Equity Component   23,461   23,461   58,284
Interest on Convertible Debt, Equity Portion $ 19,145     $ 53,698   $ 5,171
Gain on Extinguishment and Reissuance of Promissory Notes With Related Party   $ 94,191        
Promissory Note [Member] | Income Approach Valuation Technique [Member]            
Fair Value Inputs, Discount Rate       15.00%    
XML 44 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Promissory Notes - Schedule of Promissory Notes (Details) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2017
Mar. 31, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Balance   $ 347,698   $ 347,698    
Promissory note issued       188,136  
Interest accretion $ 22,110   62,021  
Balance 480,203     480,203   $ 347,698
Promissory Note [Member]            
Balance   347,698   347,698
Promissory note issued   188,136   188,136   400,000
Discount on promissory note   $ (23,461)   (23,461)   (58,284)
Gain on extinguishment and reissuance of promissory notes with related parties       (94,191)  
Extinguishment of promissory notes to related parties       (418,181)  
Reissuance of promissory notes to related parties       418,181  
Accrued interest       8,323   811
Interest accretion 19,145     53,698   5,171
Balance $ 480,203     $ 480,203   $ 347,698
XML 45 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency) (Details Textual)
CAD / shares in Units, $ / shares in Units, CAD in Thousands
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Oct. 31, 2017
USD ($)
$ / shares
shares
Sep. 30, 2017
USD ($)
$ / shares
shares
Jun. 30, 2017
USD ($)
shares
Jun. 30, 2017
CAD
CAD / shares
shares
Sep. 30, 2016
USD ($)
Sep. 30, 2017
USD ($)
$ / shares
shares
Sep. 30, 2016
USD ($)
Dec. 31, 2016
$ / shares
shares
Jun. 30, 2017
USD ($)
$ / shares
shares
Common Stock, Dividends, Per Share, Declared | $ / shares           $ 0      
Common Stock, No Par Value | $ / shares   $ 0       $ 0   $ 0  
Proceeds from Issuance of Private Placement | $           $ 1,785,488 $ 1,513,354    
Derivative Liability | $   $ 98,615       98,615     $ 123,284
Fair Value Adjustment of Warrants | $   $ (24,669)     $ (24,669)    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross           0   1,010,000  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period   60,000              
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period           0    
Private Placement [Member]                  
Proceeds from Issuance of Private Placement, Net | $   $ 999,760              
Proceeds from Issuance of Private Placement   1,010,763 $ 790,281 CAD 1,045          
Payments of Stock Issuance Costs | $   $ 11,003 $ 4,553            
Units Issued During the Period, Units, New Issues   2,887,895 2,323,779 2,323,779          
Units Issued During the Period, Price Per Unit | (per share)   $ 0.35   CAD 0.45   $ 0.35     $ 0.34
Number of Common Shares per Unit   1       1     1
Number of Warrants Per Unit   1       1     1
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right   1       1     1
Class of Warrant or Right, Term   1 year 1 year 1 year          
Private Placement [Member] | Subsequent Event [Member]                  
Proceeds from Issuance of Private Placement, Net | $ $ 44,797                
Proceeds from Issuance of Private Placement | $ 45,010                
Payments of Stock Issuance Costs | $ $ 213                
Units Issued During the Period, Units, New Issues 128,600                
Units Issued During the Period, Price Per Unit | $ / shares $ 0.35                
Number of Common Shares per Unit 1                
Number of Warrants Per Unit 1                
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right 1                
Class of Warrant or Right, Term 1 year                
Private Placement [Member] | Warrants Exercisable in the First Six Months Following Closing [Member]                  
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share)   $ 0.44   CAD 0.55   $ 0.44      
Private Placement [Member] | Warrants Exercisable in the First Six Months Following Closing [Member] | Subsequent Event [Member]                  
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 0.44                
Private Placement [Member] | Warrants Exercisable From 7 to 12 Months Following Closing [Member]                  
Class of Warrant or Right, Exercise Price of Warrants or Rights | (per share)   $ 0.52   CAD 0.65   $ 0.52      
Private Placement [Member] | Warrants Exercisable From 7 to 12 Months Following Closing [Member] | Subsequent Event [Member]                  
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 0.52                
XML 46 R39.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency) - Fair Value Derivative Assumptions (Details) - Warrant Liabilities [Member] - CAD / shares
6 Months Ended 9 Months Ended
Jun. 30, 2017
Sep. 30, 2017
Average stock price (CAD) (in CAD per share) CAD 0.64 CAD 0.60
Expected dividend yield
Expected stock price volatility 33.00% 32.70%
Risk-free interest rate 0.71% 1.51%
Expected life of warrants (in years) (Year) 1 year 1 year
XML 47 R40.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency) - Stock Option Activity (Details) - $ / shares
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Outstanding and exercisable, number of options, balance (in shares) 1,010,000
Outstanding and exercisable, weighted average exercise price (in dollars per share) $ 0.42
Granted, number of options (in shares) 0 1,010,000
Granted, weighted average exercise price (in dollars per share) $ 0.42
Exercised, number of options (in shares) 0
Exercised, weighted average exercise price (in dollars per share)
Expired, number of options (in shares) (130,000)  
Expired, weighted average exercise price (in dollars per share) $ (0.42)  
Outstanding and exercisable, number of options, balance (in shares) 880,000 1,010,000
Outstanding and exercisable, weighted average exercise price (in dollars per share) $ 0.42 $ 0.42
XML 48 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stockholders' Equity (Deficiency) - Stock Option Valuation Assumptions (Details) - Employee Stock Option [Member]
9 Months Ended 12 Months Ended
Sep. 30, 2017
CAD / shares
Dec. 31, 2016
CAD / shares
Sep. 30, 2017
USD ($)
Dec. 31, 2016
USD ($)
Exercise price (in CAD per share) | CAD / shares CAD 0.54    
Expected dividend yield    
Expected stock price volatility 78.00%    
Weighted average volatility 78.00%    
Risk-free interest rate 1.90%    
Expected life of options (in years) (Year) 5 years    
Forfeiture rate 0.00%    
Intrinsic value | $     $ 42,357 $ 0
XML 49 R42.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Commitments (Details Textual)
3 Months Ended 12 Months Ended
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2014
GBP (£)
Operating Leases, Rent Expense, Net $ 4,895 $ 7,669    
Executive Chairman [Member]        
Consulting Agreement, Monthly Payment, Percentage     2.50% 2.50%
Executive Chairman [Member] | Minimum [Member]        
Consulting Agreement, Monthly Payment     $ 11,000  
Executive Chairman [Member] | Maximum [Member]        
Consulting Agreement, Monthly Payment     $ 25,000  
Chief Executive Officer [Member]        
Consulting Agreement, Monthly Payment, Percentage     2.50% 2.50%
Consulting Agreement, Monthly Payment | £       £ 5,000
Chief Executive Officer [Member] | Minimum [Member]        
Consulting Agreement, Monthly Payment     $ 7,500  
Chief Executive Officer [Member] | Maximum [Member]        
Consulting Agreement, Monthly Payment     $ 25,000  
XML 50 R43.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Commitments - Operating Leases (Details)
Sep. 30, 2017
USD ($)
2017 $ 1,486
2018
XML 51 R44.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Income Taxes (Details Textual)
1 Months Ended
Nov. 14, 2017
CAD
Subsequent Event [Member] | British Columbia Provincial Government [Member]  
Proceeds from Tax Credit CAD 39,919
XML 52 R45.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Deferred tax assets:    
Net operating loss carry forwards $ 15,959 $ 15,017
Valuation Allowance $ (15,959) $ (15,017)
XML 53 R46.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Related Party Transactions (Details Textual)
3 Months Ended 9 Months Ended
Sep. 30, 2017
USD ($)
shares
Jun. 30, 2017
USD ($)
shares
Jun. 30, 2017
CAD
shares
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Dec. 31, 2016
USD ($)
Proceeds from Issuance of Private Placement       $ 1,785,488 $ 1,513,354  
Private Placement [Member]            
Units Issued During the Period, Units, New Issues | shares 2,887,895 2,323,779 2,323,779      
Proceeds from Issuance of Private Placement $ 1,010,763 $ 790,281 CAD 1,045,000      
Director and Officer [Member]            
Due to Related Parties 0     0   $ 0
Payment for Directors Fees 33,000     33,000 33,000  
Director and Officer 2 [Member]            
Due to Related Parties 804     804   2
Director and Officer 3 [Member]            
Due to Related Parties 0     0   0
Payment for Directors Fees 19,638     19,638 19,676  
Director and Officer 4 [Member]            
Due to Related Parties 0     0   0
Payment for Directors Fees 22,500     22,500 22,500  
Independent Director [Member]            
Due to Related Parties 3,000     3,000   500
Payment for Directors Fees 1,000     1,000 2,000  
Officer [Member]            
Due to Related Parties 7,472     7,472   4,852
Payment for Directors Fees 23,447     23,447 13,658  
Director [Member]            
Due to Related Parties 0     0   2
Payment for Directors Fees 0     0 $ 4,985  
Shareholders Holding More Than 10% of the Company [Member]            
Notes Payable, Related Parties $ 597,270     $ 597,270   $ 400,811
Debt Instrument, Interest Rate, Stated Percentage 2.00%     2.00%   2.00%
Shareholders Holding More Than 10% of the Company [Member] | Private Placement [Member]            
Units Issued During the Period, Units, New Issues | shares   1,200,000 1,200,000      
Proceeds from Issuance of Private Placement   $ 408,102 CAD 540,000      
XML 54 R47.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Segmented Information (Details Textual)
9 Months Ended
Sep. 30, 2017
Number of Reportable Segments 1
XML 55 R48.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Segmented Information - Revenue by Geographical Region (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Total revenue from continuing operations $ 18,853 $ 52,758 $ 74,888 $ 241,138
Western Europe [Member]        
Total revenue from continuing operations 2,216 5,421 8,127 29,519
Central Eastern and Southern Europe [Member]        
Total revenue from continuing operations 16 36 376 63
Nordics [Member]        
Total revenue from continuing operations 134 161 489 803
North America [Member]        
Total revenue from continuing operations 12,758 40,217 52,536 194,025
Others [Member]        
Total revenue from continuing operations $ 3,729 $ 6,923 $ 13,360 $ 16,728
XML 56 R49.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 11 - Segmented Information - Equipment by Location (Details) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Net Book Value $ 11,173 $ 10,148
Anguilla [Member]    
Net Book Value 621 828
CANADA    
Net Book Value 9,635 8,097
UNITED KINGDOM    
Net Book Value $ 917 $ 1,223
XML 57 R50.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 13 - Concentrations of Credit Risk (Details Textual) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2015
Cash $ 818,085 $ 60,190 $ 82,417 $ 570,086
Cash, Uninsured Amount 612,699 0    
Amounts Representation by Customer Who Accounted for Greater than 10 of Total Accounts Receivable $ 9,691 $ 13,300    
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