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Note 7 - Promissory Notes
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Debt Disclosure [Text Block]
7.
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 subseque
nt 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, 2017,
the Company issued
$188,135
(
2016
-
$400,000
) promissory notes and recognized a discount on the promissory notes of
$23,461
(
2016
-
$58,284
) and
$72,844
(
2016
-
$5,171
) of interest accretion.
 
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 through equity since the notes are from related parties.
 
   
2017
    
2016
  
Opening balance
   $
347,698
     $
-
  
                 
Promissory note issued
    
188,135
      
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
    
11,288
      
811
  
                 
Interest accretion
    
72,844
      
5,171
  
                 
Closing balance
   $
502,313
     $
347,698