XML 22 R17.htm IDEA: XBRL DOCUMENT v3.20.1
Note 10 - Promissory Notes
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Debt Disclosure [Text Block]
10.
Promissory notes:
 
The Company had issued unsecured promissory notes from shareholders of the Company. The notes were repayable on
April 1, 2020,
as amended. The interest on the notes was
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 the note.
 
During the year ended
December 31, 2018,
the promissory notes were settled in exchange for the exercise of warrants and the notes were extinguished. Since the extinguishment of the promissory note is with related parties, then in accordance with ASC
470
-
50
-
40
-
2,
the extinguishment transactions is in essence a capital transaction. Therefore, the Company recognized a reduction of
$65,955
from equity of the Company in the year ended
December 31, 2018.
 
The Company recognized interest accretion of
$nil
(
2018
-
$31,966
) of interest accretion.
 
   
2019
    
2018
  
Opening balance
   $
-
     $
502,313
  
                 
Reduction of capital on extinguishment of promissory notes with related parties
    
-
      
65,955
  
Extinguishment of promissory notes to related parties
    
-
      
(605,358
 )
Accrued interest
    
-
      
5,124
  
Interest accretion
    
-
      
31,966
  
                 
Closing balance
   $
-
     $
-