TITAN MEDICAL INC.
|
|||
(Registrant)
|
|||
|
|||
Date: August 12, 2020
|
By:
|
/s/ Stephen Randall
|
|
Name:
|
Stephen Randall
|
||
Title:
|
Chief Financial Officer
|
TORONTO--(BUSINESS WIRE)--August 12, 2020--Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD) (Nasdaq: TMDI), a medical device company focused on the design and development of single-port robotic surgical technologies, announces financial results for the three and six months ended June 30, 2020.
All financial results are prepared in accordance with International Accounting Standards (“IAS”) 34 on a basis consistent with the Company’s 2019 annual financial statements and are reported in U.S. dollars, unless otherwise stated. The unaudited condensed interim consolidated financial statements and management’s discussion and analysis for the period ended June 30, 2020 may be viewed at www.sedar.com and at www.sec.gov.
David McNally, President and CEO of Titan, said, “The most significant event of the first half of 2020 was the execution of a license agreement, a development and license agreement and a senior secured note with Medtronic plc, which we announced on June 4. We are honored to have secured this relationship based on the value demonstrated in our intellectual property and technology, and the confidence in our technical know-how in single-port robotic surgery to develop, over the course of the next 12 months, technologies for the mutual benefit of each company.”
Mr. McNally continued, “Following the announcement of the agreements with Medtronic, we received a $10 million license payment in accordance with the license agreement. We then secured and announced the closing of an $18 million registered direct offering on June 11, 2020, which has allowed us to resume development of instruments for our single-port robotic surgical system, and satisfies one of the milestones under the development and licensing agreement.”
Mr. McNally concluded, “During the first half of 2020, we also reached agreement on a payment plan with one of our product development suppliers and resolved pending litigation with another service provider. We are now focused on staffing our newly created U.S. affiliate’s new facility in Chapel Hill, North Carolina in order to execute on the development milestones associated with our single-port surgical system, while continuing progress toward those associated with the development and license agreement.”
Business highlights and achievements for the first six months of 2020 and recent weeks include:
Financial results for the three and six months ended June 30, 2020 include:
About Titan
Titan Medical Inc. is focused on robotic-assisted technologies for application in minimally invasive surgery (“MIS”). Titan is developing a single-port robotic surgical system comprised of a surgeon-controlled patient cart that includes a dual-view camera system with 3D and 2D high-definition vision systems and multi-articulating instruments for performing MIS procedures, and a surgeon workstation that provides an ergonomic interface to the patient cart and a 3D high-definition endoscopic view of the MIS procedure. Titan intends to initially pursue gynecologic surgical indications for use of its single-port robotic surgical system.
For more information, visit www.titanmedicalinc.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Such statements reflect the current expectations of management of the Company’s future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “potential for” and similar expressions have been used to identify these forward-looking statements. These statements, include but are not limited to statements with respect to the planned achievement of milestones associated with the license agreement, development and license agreement and senior secured note with Medtronic, Titan’s intention to develop technologies for the mutual benefit of Titan and Medtronic, Titan’s focus on staffing its U.S. affiliate’s new facility in Chapel Hill, North Carolina and its reasons for doing so and the development of Titan’s own single-port surgical system, it’s anticipated features and the initial surgical indications Titan intends to pursue. These statements reflect management’s current beliefs with respect to future events and are based on information currently available to management. There can be no assurance that the Company will be successful in raising additional capital necessary to recruit and retain key employees and to complete development of its single-port robotic surgical system. Furthermore, as previously announced on March 30, 2020, the Company notes that its business and prospects are subject to added risks associated with and arising from COVID-19, and the uncertainty of the effects, duration and severity of the outbreak. For example, the potential effects on the Company’s product and service providers, consultants, U.S. and European regulatory authorities and investigational hospital sites is presently unknown. Titan’s previous market opportunity and growth projections are rendered unreliable given the severity of COVID-19 on the healthcare sector as well as, more broadly, on the economy and the capital markets. The Company therefore has withdrawn and disclaimed all prior disclosures and references in its annual information forms, management’s discussion and analysis, material change reports, news releases, investor presentations, letters to shareholders, prospectuses and other regulatory filings, with respect to: i) market research reports published by external market research firms; ii) market size and growth projections; iii) any and all product and service pricing estimates; iv) revenue projections; and v) market and revenue growth set forth in news releases or filings of other issuers in the robotic surgical technology sector. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the “Risk Factors” section of the Company’s Annual Report for the year ended December 31, 2019 (which may be viewed at www.sedar.com and www.sec.gov). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance, or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Stephen Randall
Chief Financial Officer
+1-416-548-7522
stephen@titanmedicalinc.com
Note
|
June 30, 2020
|
December 31, 2019
|
|||||||||||
Assets
|
|||||||||||||
Current Assets:
|
|||||||||||||
Cash and cash equivalents
|
$
|
28,689,757
|
$
|
814,492
|
|||||||||
Amounts receivable
|
142,819
|
84,097
|
|||||||||||
Deposits
|
9
|
481,400
|
481,400
|
||||||||||
Prepaid expense
|
904,145
|
369,453
|
|||||||||||
Total Current Assets
|
$
|
30,218,121
|
$
|
1,749,442
|
|||||||||
Right of use assets - Leases
|
3
|
440,328
|
30,394
|
||||||||||
Patent rights
|
4
|
1,688,485
|
1,601,745
|
||||||||||
Total Assets
|
$
|
32,346,934
|
$
|
3,381,581
|
|||||||||
Liabilities
|
|||||||||||||
Current Liabilities:
|
|||||||||||||
Accounts payable and accrued liabilities
|
5
|
$
|
8,376,796
|
$
|
11,412,896
|
||||||||
Current portion of lease liability
|
3
|
94,474
|
21,071
|
||||||||||
Warrant liability
|
6
|
19,770,834
|
3,621,444
|
||||||||||
Total Current Liabilities
|
$
|
28,242,104
|
$
|
15,055,411
|
|||||||||
Note payable
|
7
|
$
|
1,653,822
|
$
|
-
|
||||||||
Long-term lease liability
|
3
|
367,038
|
8,001
|
||||||||||
Total Liabilities
|
$
|
30,262,964
|
$
|
15,063,412
|
|||||||||
Shareholders' Equity (Deficiency)
|
|||||||||||||
Share Capital
|
8
|
$
|
210,101,795
|
$
|
194,859,415
|
||||||||
Contributed Surplus
|
8,738,190
|
8,303,527
|
|||||||||||
Deficit
|
(216,756,015
|
)
|
(214,844,773
|
)
|
|||||||||
Shareholders' Equity (Deficiency)
|
$
|
2,083,970
|
$
|
(11,681,831
|
)
|
||||||||
Total Liabilities and Deficiency
|
$
|
32,346,934
|
$
|
3,381,581
|
|||||||||
Commitments (Note 9)
|
|||||||||
Subsequent events (Note 13)
|
|||||||||
See notes to financial statements
|
|||||||||
Approved on behalf of the Board:
|
|||||||||
"signed"
|
"signed"
|
||||||||
John E. Barker
|
David McNally
|
||||||||
Director
|
Chairman and CEO
|
Three Months Ended
|
Six Months Ended
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||
Note
|
June 30, 2020
|
June 30, 2020
|
June 30, 2019
|
June 30, 2019
|
||||||||||||||||
Revenue
|
$
|
10,000,000
|
$
|
10,000,000
|
$
|
-
|
$
|
-
|
||||||||||||
Expenses
|
||||||||||||||||||||
Amortization
|
$
|
35,475
|
$
|
49,570
|
$
|
7,291
|
$
|
13,466
|
||||||||||||
Consulting fees
|
83,744
|
195,869
|
451,068
|
720,497
|
||||||||||||||||
Stock based compensation
|
8b
|
|
206,087
|
434,663
|
740,051
|
991,408
|
||||||||||||||
Insurance
|
122,415
|
245,577
|
116,123
|
234,612
|
||||||||||||||||
Management salaries and fees
|
605,277
|
1,146,872
|
749,880
|
1,398,466
|
||||||||||||||||
Marketing and investor relations
|
8,843
|
17,487
|
102,487
|
208,676
|
||||||||||||||||
Office and general
|
45,955
|
185,842
|
77,136
|
194,407
|
||||||||||||||||
Professional fees
|
1,031,457
|
1,389,943
|
303,460
|
406,845
|
||||||||||||||||
Rent
|
5,960
|
13,201
|
16,515
|
28,751
|
||||||||||||||||
Research and development
|
121,463
|
167,582
|
18,360,674
|
32,769,286
|
||||||||||||||||
Travel
|
1,622
|
12,760
|
80,631
|
147,995
|
||||||||||||||||
Interest charges
|
252,542
|
465,239
|
-
|
-
|
||||||||||||||||
Foreign exchange (gain)
|
24,580
|
(48,923
|
)
|
148,689
|
41,047
|
|||||||||||||||
$
|
2,545,420
|
$
|
4,275,682
|
$
|
21,154,005
|
$
|
37,155,456
|
|||||||||||||
Net Earnings (Loss) from Operations
|
7,454,580
|
5,724,318
|
(21,154,005
|
)
|
(37,155,456
|
)
|
||||||||||||||
Finance Income (Cost)
|
||||||||||||||||||||
Interest
|
$
|
4,831
|
$
|
6,574
|
$
|
71,187
|
94,218
|
|||||||||||||
Gain on settlement
|
5
|
1,839,626
|
1,839,626
|
-
|
-
|
|||||||||||||||
Gain (loss) on change in fair value of warrants
|
6
|
(8,782,920
|
)
|
(7,665,444
|
)
|
6,609,952
|
(3,866,673
|
)
|
||||||||||||
Warrant liability issue cost
|
(1,659,316
|
)
|
(1,816,316
|
)
|
-
|
(1,827,835
|
)
|
|||||||||||||
$
|
(8,597,779
|
)
|
$
|
(7,635,560
|
)
|
$
|
6,681,139
|
$
|
(5,600,290
|
)
|
||||||||||
Net and Comprehensive Loss for the Period
|
$
|
(1,143,199
|
)
|
$
|
(1,911,242
|
)
|
$
|
(14,472,866
|
)
|
$
|
(42,755,746
|
)
|
||||||||
Basic and Diluted Loss per Share
|
$
|
(0.02
|
)
|
$
|
(0.04
|
)
|
$
|
(0.46
|
)
|
$
|
(1.57
|
)
|
||||||||
Weighted Average Number of Common Shares
|
||||||||||||||||||||
Basic and Diluted
|
60,764,929
|
52,518,608
|
31,150,237
|
27,190,063
|
||||||||||||||||
See notes to financial statements
|
Note
|
Share Capital Number
|
Share Capital Amount
|
Contributed
Surplus
|
Net Income (Deficit)
|
Total Equity (Deficiency)
|
|||||||||||||||||||
Balance - December 31, 2018
|
21,675,849
|
$
|
170,502,394
|
$
|
6,652,409
|
$
|
(172,937,694
|
)
|
$
|
4,217,109
|
||||||||||||||
Issued pursuant to agency agreement
|
8a
|
|
8,455,882
|
13,717,131
|
-
|
-
|
13,717,131
|
|||||||||||||||||
Share issue expense
|
-
|
(1,498,498
|
)
|
-
|
-
|
(1,498,498
|
)
|
|||||||||||||||||
Warrants exercised during the period
|
8a
|
|
1,018,506
|
7,002,043
|
-
|
-
|
7,002,043
|
|||||||||||||||||
Stock based compensation
|
8b
|
|
-
|
-
|
991,408
|
-
|
991,408
|
|||||||||||||||||
Net and comprehensive loss
|
-
|
-
|
-
|
(42,755,746
|
)
|
(42,755,746
|
)
|
|||||||||||||||||
Balance - June 30, 2019
|
31,150,237
|
$
|
189,723,070
|
$
|
7,643,817
|
$
|
(215,693,440
|
)
|
$
|
(18,326,553
|
)
|
|||||||||||||
Balance - December 31, 2019
|
39,907,681
|
$
|
194,859,415
|
$
|
8,303,527
|
$
|
(214,844,773
|
)
|
$
|
(11,681,831
|
)
|
|||||||||||||
Issued pursuant to agency agreement1
|
8a
|
|
23,923,700
|
12,818,657
|
-
|
-
|
12,818,657
|
|||||||||||||||||
Share issue expense
|
-
|
(487,788
|
)
|
-
|
-
|
(487,788
|
)
|
|||||||||||||||||
Common stock equivalents converted
|
8a
|
|
8,000,000
|
800
|
-
|
-
|
800
|
|||||||||||||||||
Warrants exercised during the period
|
8a
|
|
3,750,000
|
2,910,711
|
-
|
-
|
2,910,711
|
|||||||||||||||||
Stock based compensation
|
8b
|
|
-
|
-
|
434,663
|
-
|
434,663
|
|||||||||||||||||
Net and comprehensive loss
|
-
|
-
|
-
|
(1,911,242
|
)
|
(1,911,242
|
)
|
|||||||||||||||||
Balance - June 30, 2020
|
75,581,381
|
$
|
210,101,795
|
$
|
8,738,190
|
$
|
(216,756,015
|
)
|
$
|
2,083,970
|
||||||||||||||
1. Includes net proceeds from the issuance of common share equivalents (see note 8a)
|
||||||||||||||||||||||||
See notes to financial statements
|
Three Months Ended
|
Six Months Ended
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
June 30, 2020
|
June 30, 2020
|
June 30, 2019
|
June 30, 2019
|
||||||||||||||
Cash provided by (used in):
|
|||||||||||||||||
Operating activities:
|
|||||||||||||||||
Net loss for the period
|
$
|
(1,143,199
|
)
|
$
|
(1,911,242
|
)
|
$
|
(14,472,866
|
)
|
$
|
(42,755,746
|
)
|
|||||
Items not involving cash:
|
|||||||||||||||||
Amortization
|
35,475
|
49,570
|
7,291
|
13,466
|
|||||||||||||
Stock based compensation
|
206,087
|
434,663
|
740,051
|
991,408
|
|||||||||||||
Warrant liability-fair value adjustment
|
8,782,920
|
7,665,444
|
(6,609,952
|
)
|
3,866,673
|
||||||||||||
Warrant liability-foreign exchange adjustment
|
12,997
|
(38,094
|
)
|
142,682
|
36,625
|
||||||||||||
Non-cash issue costs
|
737,894
|
764,134
|
-
|
-
|
|||||||||||||
Non-cash settlement included in payables
|
1,839,626
|
2,090,200
|
-
|
-
|
|||||||||||||
Non-cash note payable expenses and accrued interest
|
153,822
|
153,822
|
-
|
-
|
|||||||||||||
Changes in non-cash working capital items:
|
|||||||||||||||||
Amounts receivable, prepaid expenses and deposits
|
(766,837
|
)
|
(593,417
|
)
|
1,294,599
|
(283,330
|
)
|
||||||||||
Accounts payable and accrued liabilities
|
(3,647,795
|
)
|
(4,875,714
|
)
|
5,736,133
|
5,783,889
|
|||||||||||
Cash from (used) in operating activities
|
$
|
6,210,990
|
$
|
3,739,366
|
$
|
(13,162,062
|
)
|
$
|
(32,347,015
|
)
|
|||||||
Financing activities:
|
|||||||||||||||||
Net proceeds from issuance of common shares and warrants1
|
19,272,277
|
22,749,702
|
(2,997
|
)
|
31,374,911
|
||||||||||||
Proceeds from note payable
|
1,500,000
|
1,500,000
|
-
|
-
|
|||||||||||||
Repayment of lease liabilities
|
(6,299
|
)
|
(10,243
|
)
|
-
|
-
|
|||||||||||
Cash provided by financing activities
|
$
|
20,765,978
|
$
|
24,239,459
|
$
|
(2,997
|
)
|
$
|
31,374,911
|
||||||||
Investing Activities:
|
|||||||||||||||||
Additions to patents
|
(47,430
|
)
|
(103,560
|
)
|
(125,198
|
)
|
(178,956
|
)
|
|||||||||
Cash used in investing activities
|
$
|
(47,430
|
)
|
$
|
(103,560
|
)
|
$
|
(125,198
|
)
|
$
|
(178,956
|
)
|
|||||
Increase (Decrease) in cash and cash equivalents
|
26,929,538
|
27,875,265
|
(13,290,257
|
)
|
(1,151,060
|
)
|
|||||||||||
Cash and cash equivalents, beginning of the period
|
1,760,219
|
814,492
|
23,610,440
|
11,471,243
|
|||||||||||||
Cash and cash equivalents, end of the period
|
$
|
28,689,757
|
$
|
28,689,757
|
$
|
10,320,183
|
$
|
10,320,183
|
|||||||||
Cash and cash equivalents comprise:
|
|||||||||||||||||
Cash
|
|
$
|
970,690
|
$
|
970,690
|
$
|
1,392,741
|
$
|
1,392,741
|
||||||||
Cash Equivalents
|
|
27,719,067
|
27,719,067
|
8,927,442
|
8,927,442
|
||||||||||||
$
|
28,689,757
|
$
|
28,689,757
|
$
|
10,320,183
|
$
|
10,320,183
|
||||||||||
1. Includes net proceeds from the issuance of common share equivalents (see note 8a)
|
|||||||||||||||||
See notes to financial statements
|
●
|
Revenue from the License Agreement for intellectual property rights and know-how (“Royalty Payment”) is recognized when rights are granted and customer acceptance is
established. Compensation received for the performance of technology transfer services relating to the License Agreement is accounted for separately from the Royalty Payment and will be recognized at the time the service is performed.
|
●
|
Revenue from the Development Agreement (see note 7) and the allocation of ownership ad license rights developed under each milestone is recognized when the rights are
granted and customer acceptance is established.
|
For the six months ended June 30, 2020
|
Cost
|
Accumulated Amortization
|
Net Book
Value
|
|||||||||
Balance at December 31, 2019
|
$
|
34,172
|
$
|
(3,778
|
)
|
$
|
30,394
|
|||||
Additions during the period
|
442,684
|
-
|
442,684
|
|||||||||
Amortization in the period
|
-
|
(32,750
|
)
|
(32,750
|
)
|
|||||||
Balance at June 30, 2020
|
$
|
476,856
|
$
|
(36,528
|
)
|
$
|
440,328
|
For the six months ended June 30, 2020
|
Cost
|
Accumulated
Amortization & Impairment Losses
|
Net Book
Value
|
|||||||||
Balance at December 31, 2019
|
$
|
1,856,750
|
$
|
(255,005
|
)
|
$
|
1,601,745
|
|||||
Additions during the period
|
103,560
|
-
|
103,560
|
|||||||||
Amortization in the period
|
-
|
(16,820
|
)
|
(16,820
|
)
|
|||||||
Balance at June 30, 2020
|
$
|
1,960,310
|
$
|
(271,825
|
)
|
$
|
1,688,485
|
For the six months ended June 30, 2019
|
Cost
|
Accumulated
Amortization & Impairment Losses
|
Net Book
Value
|
|||||||||
Balance at December 31, 2018
|
$
|
1,398,713
|
$
|
(226,228
|
)
|
$
|
1,172,485
|
|||||
Additions during the period
|
178,956
|
-
|
178,956
|
|||||||||
Amortization in the period
|
-
|
(13,466
|
)
|
(13,466
|
)
|
|||||||
Balance at June 30, 2019
|
$
|
1,577,669
|
$
|
(239,694
|
)
|
$
|
1,337,975
|
Six Months Ended
|
Year Ended
|
|||||||||||||||
June 30, 2020
|
December 31, 2019
|
|||||||||||||||
Number of Warrants
|
Amount
|
Number of Warrants
|
Amount
|
|||||||||||||
Opening Balance
|
21,203,411
|
$
|
3,621,444
|
13,901,859
|
$
|
11,250,167
|
||||||||||
Issue of warrants expiring March 21, 2024
|
-
|
-
|
8,455,882
|
15,897,059
|
||||||||||||
Issue of warrants expiring March 27, 2025
|
3,500,000
|
475,300
|
-
|
-
|
||||||||||||
Issue of warrants expiring November 6, 2025t
|
2,757,252
|
508,200
|
-
|
-
|
||||||||||||
Issue of warrants expiring June 10, 2024
|
9,000,000
|
9,709,200
|
-
|
-
|
||||||||||||
Warrants exercised during the period
|
(3,750,000
|
)
|
(2,170,660
|
)
|
(1,018,506
|
)
|
(3,742,824
|
)
|
||||||||
Warrants expired during the period
|
-
|
-
|
(135,824
|
)
|
-
|
|||||||||||
Foreign exchange adjustment during the period
|
-
|
(38,094
|
)
|
-
|
17,687
|
|||||||||||
Fair value adjustment during the period
|
-
|
7,665,444
|
-
|
(19,800,645
|
)
|
|||||||||||
Ending Balance
|
32,710,663
|
$
|
19,770,834
|
21,203,411
|
$
|
3,621,444
|
Grant Date
|
Common shares issued
|
Value
|
||||||
January 3, 2020
|
500,000
|
$
|
219,600
|
|||||
January 6, 2020
|
500,000
|
229,300
|
||||||
January 8, 2020
|
400,000
|
195,160
|
||||||
January 10, 2020
|
500,000
|
247,550
|
||||||
January 17, 2020
|
600,000
|
303,000
|
||||||
January 23, 2020
|
600,000
|
295,320
|
||||||
February 6, 2020
|
600,000
|
282,000
|
||||||
February 13, 2020
|
708,048
|
300,000
|
||||||
4,408,048
|
$
|
2,071,930
|
Grant Date
|
Common shares issued
|
Value
|
||||||
August 30, 2019
|
2,417,162
|
$
|
3,000,000
|
|||||
November 8, 2019
|
100,000
|
42,560
|
||||||
November 8, 2019
|
100,000
|
42,560
|
||||||
November 12, 2019
|
100,000
|
42,970
|
||||||
November 12, 2019
|
100,000
|
42,000
|
||||||
November 13, 2019
|
100,000
|
42,970
|
||||||
November 14, 2019
|
300,000
|
128,910
|
||||||
November 15, 2019
|
2,500,000
|
1,074,250
|
||||||
November 19, 2019
|
2,067,282
|
888,311
|
||||||
|
7,784,444
|
$
|
5,304,531
|
Six Months Ended June 30, 2020
|
Year Ended December 31, 2019
|
|||||||||||||||
Stock Options - CDN $ denominated
|
Number of
Stock
Options |
Weighted average Exercise Price (CDN)
|
Number of
Stock
Options
|
Weighted average Exercise Price
(CDN)
|
||||||||||||
|
||||||||||||||||
Balance beginning
|
860,379
|
$
|
5.89
|
875,433
|
$
|
18.20
|
||||||||||
Granted
|
25,765
|
0.66
|
35,719
|
4.54
|
||||||||||||
Expired / forfeited
|
(17,980
|
)
|
24.55
|
(50,773
|
)
|
31.79
|
||||||||||
Balance ending
|
868,164
|
$
|
5.46
|
860,379
|
$
|
5.89
|
||||||||||
|
||||||||||||||||
Stock Options - USD $ denominated
|
Number of Stock Options
|
Weighted average Exercise Price (USD)
|
Number of Stock Options
|
Weighted average Exercise Price (USD)
|
||||||||||||
|
||||||||||||||||
Balance beginning
|
854,042
|
$
|
2.65
|
50,349
|
$
|
1.55
|
||||||||||
Granted
|
-
|
-
|
843,693
|
2.72
|
||||||||||||
Expired / forfeited
|
(467,255
|
)
|
2.20
|
(40,000
|
)
|
3.72
|
||||||||||
Balance ending
|
386,787
|
$
|
3.19
|
854,042
|
$
|
2.65
|
||||||||||
|
||||||||||||||||
Total number of stock options
|
1,254,951
|
1,714,421
|
Canadian Dollar Denominated Options
|
|||||||||||||||
Exercise Price (CDN)
|
Number Outstanding
|
Weighted-
average remaining contractual life (years)
|
Options Exercisable
|
||||||||||||
$
|
0.66
|
25,765
|
6.58
|
25,765
|
|||||||||||
$
|
3.28
|
31,498
|
5.17
|
31,498
|
|||||||||||
$
|
4.50
|
18,936
|
2.78
|
18,936
|
|||||||||||
$
|
4.54
|
735,998
|
3.77
|
379,030
|
|||||||||||
$
|
4.80
|
3,040
|
0.21
|
3,040
|
|||||||||||
$
|
9.00
|
11,481
|
5.02
|
11,481
|
|||||||||||
$
|
9.60
|
1,105
|
0.27
|
1,105
|
|||||||||||
$
|
11.70
|
6,667
|
0.44
|
6,667
|
|||||||||||
$
|
12.00
|
1,948
|
0.43
|
1,948
|
|||||||||||
$
|
30.00
|
28,260
|
1.15
|
28,260
|
|||||||||||
$
|
30.60
|
2,096
|
0.48
|
2,096
|
|||||||||||
$
|
32.40
|
810
|
0.58
|
810
|
|||||||||||
$
|
45.30
|
560
|
0.12
|
560
|
|||||||||||
868,164
|
3.75
|
511,196
|
|||||||||||||
US Dollar Denominated Options
|
|||||||||||||||
Exercise Price (USD)
|
Number Outstanding
|
Weighted-average remaining contractual life (years)
|
Options Exercisable
|
||||||||||||
$
|
1.55
|
50,349
|
1.47
|
50,349
|
|||||||||||
$
|
2.20
|
2,165
|
2.05
|
2,165
|
|||||||||||
$
|
3.40
|
294,273
|
5.87
|
197,273
|
|||||||||||
$
|
3.72
|
40,000
|
2.19
|
-
|
|||||||||||
386,787
|
5.14
|
249,787
|
|||||||||||||
Total
|
1,254,951
|
4.11
|
760,983
|
2020 - CDN
|
2019 – US
|
|||||||
Fair value calculated
|
CDN $0.43
|
US $1.76
|
||||||
Share price at grant
|
CDN $0.62
|
US $2.84
|
||||||
Exercise price
|
CDN $0.66
|
US $3.40
|
||||||
Expected option life
|
3.5 years
|
3.5 years
|
||||||
Risk free interest rate (based on government bonds)
|
1.41
|
%
|
1.61
|
%
|
||||
Expected volatility
|
109.00
|
%
|
98.43
|
%
|
||||
Expected dividends
|
Nil
|
Nil
|
June 30, 2020
|
December 31, 2019
|
|||||||||||||||
Number of
Shares
|
%
|
Number of
Shares
|
%
|
|||||||||||||
John Barker
|
42,714
|
0.06
|
32,714
|
0.08
|
||||||||||||
Stephen Randall
|
22,993
|
0.03
|
22,993
|
0.06
|
||||||||||||
David McNally
|
4,167
|
0.01
|
4,167
|
0.01
|
||||||||||||
John Schellhorn
|
294
|
0.00
|
294
|
0.00
|
||||||||||||
Total
|
70,168
|
0.09
|
60,168
|
0.15
|
||||||||||||
Common Shares Outstanding
|
75,581,381
|
100.00
|
%
|
39,907,681
|
100.00
|
%
|
●
|
the Company’s ability to raise sufficient financing on a timely basis, to secure and restore relationships with its suppliers and development partners and to retain qualified personnel;
|
●
|
the Company’s business plan consists of the development of computer-assisted robotic surgical technologies for application in minimally invasive surgery comprising its single-port robotic surgical system;
|
●
|
the Company is planning continued development of a robust training curriculum and post-training assessment tools for surgeons and surgical teams;
|
● | the proposed training curriculum is planned to include cognitive pre-training, psychomotor skills training, surgery simulations, live animal and human cadaver lab training, surgical team training, troubleshooting and an
overview of safety; |
● |
post-training assessment will include validation of the effectiveness of those assessment tools; |
● |
the Company’s intent to initially pursue gynecologic surgical indications for use of its single-port robotic surgical system; |
● |
the single-port robotic surgical system patient cart is being developed to deliver multi-articulating instruments and a 3D high definition vision system into the patient’s body cavity through a single access
port; |
● |
the Company’s technology and research and development objectives and milestones, including any estimated costs, schedules for completion and probability of success and including without limitation the table
set forth herein under the heading, “Current Development Plan” and the footnotes thereunder; |
● |
the Company’s intention with respect to updating any forward-looking statement after the date on which such statement is made or to reflect the occurrence of unanticipated events; |
● |
the Company’s expectation with respect to submitting its Investigational Device Exemption (“IDE”) application to the U.S. Food and Drug Administration (“FDA”) in a timely manner; |
● |
the Company’s expectation whether the FDA will grant IDE approval on terms which allow the Company to proceed with clinical studies in the U.S. which are required for regulatory approval or clearance; |
● |
the Company’s expectation that under the FDA guidelines, the surgical system will be classified as a Class II medical device; |
● |
the Company’s belief that the FDA regulation of robotic surgical systems remains similar to how the FDA has previously approved or cleared these types of devices; |
● |
any changes in a regulatory agency’s product classification, guidance, regulatory approval route or other requirements promulgated between now and the time the Company seeks regulatory approval or clearance; |
● |
the Company’s expectation that it can, in a timely manner, produce the appropriate preclinical and clinical data required for a regulatory submission to the FDA, and Technical File for the CE mark; |
● |
assuming the Company obtains regulatory approvals or clearances, the Company’s intentions with respect to initiating marketing activities and expectation with respect to launching a commercial product in
certain jurisdictions;
|
● |
the Company’s plans to design, create and refine software for production system functionality of the single-port robotic surgical system and the estimated incremental costs (including the status, cost, and
timing of achieving the development milestones disclosed herein); |
● |
the indication of additional specific milestones as the development of the Company’s single-port robotic surgical system progresses; |
● |
the Company’s intention to continue to assess specialized skill and knowledge requirements and recruitment of qualified personnel and partners; |
● |
the Company’s continuing efforts to secure its intellectual property by filing patent applications; |
● |
the Company’s expectations with respect to its relationship with the Key Supplier, |
● |
the future success of the Company is substantially dependent on funding its research and development program and maintaining the support of its research and development and manufacturing service providers and, in some
cases, securing new suppliers and service providers; |
● |
the Company will need to replace any product development service provider in the event it should be necessary or desirable to the Company; |
● |
the performance of human surgeries with the single-port robotic surgical system will require an IDE from the FDA, which must be submitted and approved in advance; |
● |
the recruitment of surgeons from multiple hospital sites will be necessary to perform the surgeries, with each of these sites requiring approval of their independent Institutional Review Board (“IRB”) to
approve the studies; |
● |
previous results achieved by surgeons in operating prototypes in animal and cadaver studies have validated the potential for single incision surgeries to be performed with the Company’s single-port robotic
surgical system; |
● |
insights gained from these preclinical studies have directed the Company to make further product refinements and improvements; |
● |
the Company’s intentions to complete summative human factors studies and complete the design and development of the system and initiate clinical studies; |
● |
the surgical indications for, and the potential benefits of, the robotic surgical system; |
● |
the Company’s ability to obtain and sustain favorable reimbursement determinations from the health authorities in each jurisdiction where products have regulatory approval or clearance to be marketed; |
● |
the Company’s belief that the materials and parts necessary for the manufacture of a clinical-grade robotic surgical system will be available in the marketplace; |
● |
the Company’s filing and prosecution of patent applications to expand its intellectual property portfolio as technologies are developed or refined; |
● |
the scope of protection obtained, if any, from the Company’s current or future patent applications, as well as their expected competitive advantages; |
● |
the Company’s seeking of licensing opportunities to expand its intellectual property portfolio; |
● |
obtaining or maintaining trademark registrations for the marks and names the Company uses in one or more countries and the future use of such marks and names; |
● |
the Company’s expected market segments and principal markets; |
● |
the Company’s expectation that negative cash flow is expected to continue; |
● |
the Company’s intention with respect to not paying any cash dividends on common shares in the foreseeable future; |
● |
the Company’s intention to retain future earnings, if any, to finance expansion and growth; |
● |
the Company’s industry and the markets in which it plans to operate or seeks to operate, including its general expectations and market position, market opportunities and market share; |
● |
the Company further expanding of its patent portfolio by filing additional patent applications as it progresses in the development of robotic surgical technologies and potentially, by licensing suitable
technologies; |
● |
the Company receiving a series of payments totaling up to $31 million for Medtronic’s license to such technologies, as technology milestones are completed and verified; |
● |
the Company’s ability to complete the technology milestones as outlined in the Medtronic Development Agreement (as defined herein); |
● |
the Company’s anticipated developments costs; |
● | the need to divert important financial and human resources toward resolving delays or problems; |
● |
the Company’s plans to pay the Key Supplier in full satisfaction of the outstanding payables by the end of the current calendar year; |
● |
the projected competitive conditions with respect to the Company’s products; and |
● |
the estimated size of the market for robotic surgical systems. |
● |
dependency on additional financing; |
● |
the Company’s history of losses; |
● |
reliance on strategic alliances; |
● |
the ability to retain key personnel in a highly competitive employment environment; |
● |
the possibility of the Company’s inability to augment its management team when required; |
● |
the possibility that the Company’s trade secrets, and confidential information may be compromised; |
● |
reliance on third parties for important aspects of the Company’s business; |
● |
industry competitiveness; |
● |
operating without infringement of intellectual property rights of others; |
● |
obtaining and enforcing patent protection for the Company’s products; |
● |
obtaining or maintaining the Company’s trademarks; |
● |
conflicts of interest; |
● |
fluctuating financial results; |
● |
rapidly changing markets; |
● |
introduction of more technologically advanced products by competitors; |
● |
potential product liability claims; |
● |
ability to license other intellectual property rights; |
● |
government regulation; |
● |
modifications to products requiring new regulatory approval or clearance; |
● |
the outcome of facility or supplier site inspections by regulatory authorities; |
● |
extensive post-market regulation; |
● |
the Company’s products causing or contributing to a death or serious injury; |
● |
recalls by governmental authorities; |
● |
compliance with accounting regulations and tax rules across multiple jurisdictions; |
● |
contingent liabilities; |
● |
sales cycle for the Company’s single-port robotic surgical system; |
● |
uncertainty as to product development and commercialization milestones; |
● |
uncertainties as to development and manufacturing of a commercially viable product; |
● |
manufacturing delays, interruptions, and cost overruns; |
● |
reliance on external suppliers and development firms; |
● |
delays, liability, and negative perceptions from product malfunction; |
● |
instruments, components, and accessories require repeated cleaning and sterilization; |
● |
commercial disputes; |
● |
additional regulatory burden and controls over financial reporting; |
● |
fluctuations in foreign currency; |
● |
the possibility that the Company may not be able to maintain its “foreign private issuer” status, and the possibility of delisting from the Nasdaq Capital Market (“Nasdaq”) or Toronto Stock Exchange
(“TSX”); |
● |
reduced disclosure requirements applicable to “emerging growth companies”; |
● |
the likelihood that the Company is a “passive foreign investment company”; |
● |
cyber-security risks and threats; |
● |
adverse impact on the Company’s financial condition and results of operations for fiscal 2020 as a result of COVID-19; |
● |
current global financial conditions; |
● |
results of operations; |
● |
difficulties with forecasting future operating results; |
● |
profitability; |
● |
obligations as a public company; |
● |
stock price volatility; |
● |
possible future sales by the Company’s shareholders of their securities; |
● |
limited operating history of the Company; |
● |
the negative impact of COVID-19 on the ability of suppliers of goods and services to provide resources in a timely manner to support the Company’s milestones; |
● |
enforcement of judgements against foreign persons; |
● |
there is no market for the Company’s unlisted warrants; |
● |
the negative impact of COVID-19 on present and future demand for robotic surgeries, equipment and supplies; and |
● |
the negative impact of COVID-19 on the ability of the Company to obtain regulatory approvals or clearances as required on a timely basis to accomplish its milestones and objectives. |
● |
general business and current global economic conditions; |
● |
ability to establish pricing and reimbursement at levels favorable to the Company; |
● |
future success of current research and development activities; |
● |
achieving development milestones for Medtronic or those related to its own internal development program; |
● |
inability to achieve product cost targets; |
● |
competition; |
● |
changes to tax rates and benefits; |
● |
the availability of financing on a timely basis and on terms acceptable to the Company; |
● |
the Company’s and competitors’ costs of production and operations; |
● |
the Company’s ability to attract and retain skilled employees; |
● |
the Company’s ongoing relations with its third-party service providers; |
● |
the design of the robotic surgical system and related platforms and equipment; |
● |
the progress and timing of the development of the Company’s robotic surgical system; |
● |
costs related to the development of the Company’s robotic surgical system; |
● |
receipt of all applicable regulatory approvals/clearances; |
● |
ability to respond to changes in the regulatory environment; |
● |
estimates and projections regarding the robotic surgery equipment industry; |
● |
protection of the Company’s intellectual property rights; |
● |
market acceptance of the Company’s systems under development; |
● |
the Company’s ability to meet the continued listing standards of Nasdaq and the TSX; |
● |
the type of specialized skill and knowledge required to develop the Company’s robotic surgical system and the Company’s access to such specialized skill and knowledge; and |
● |
the Company’s ability to meet the deliverables in accordance with the Medtronic Development and License Agreement (as defined herein). |
Milestone
Number
|
Development Milestones
|
Estimated Cost
(in US million $)
|
Schedule for
Milestone
Completion
|
Comments
|
Milestone 1
|
Obtain final independent report from validation testing of system safety and usability for the intended users and use environments under simulated robotic manipulation exercises intended to
replicate essential surgical tasks
|
Q4 2019
|
Completed
|
|
Complete User Manual for robotic system setup by operating room staff and surgeon operation of surgeon workstation, patient cart, instruments and accessories
|
Q4 2019
|
Completed
|
||
Obtain ISO 13485 Certification1
|
Q4 2019
|
Completed
Q1- 2020
|
||
Milestone 2
|
Perform additional software development and test system performance
|
TBD
|
TBD
|
|
Implement and test improvements to instruments, camera systems and accessories
|
||||
Perform biocompatibility testing of instruments, camera systems and accessories at independent lab
|
||||
Perform electrical safety testing for surgeon workstations and patient cart, including electromagnetic compatibility (EMC) and electromagnetic interference (EMI) tests at independent lab
|
||||
File Pre-Submission documentation with FDA regarding planned clinical studies
|
||||
Update application for IDE as additional testing lab data is received and continue preparations for human confirmatory studies
|
||||
Milestone 3
|
Launch rebranded product line, including logos with trademark pending, literature and presentation templates, product and packaging labeling, and new website
|
TBD
|
TBD
|
|
Complete system software validation
|
||||
Submit IDE application to FDA
|
Milestone 4
|
Receive IDE approval from FDA
|
TBD
|
TBD
|
|
Receive approvals from IRB Committees of IDE hospitals
|
||||
Commence human confirmatory studies under IDE protocols for FDA submittal
|
||||
Milestone 5
|
Complete human confirmatory studies and patient follow-up and compile reports from human confirmatory studies
|
TBD
|
TBD
|
|
Submit application to FDA for regulatory clearance
|
||||
Submit Technical File to European Notified Body for review for CE mark
|
||||
Ongoing software development and implementation
|
||||
Planning and preparation for manufacturing and commercialization
|
||||
Milestone 6
|
Planning and preparation for commercialization
|
TBD
|
TBD
|
Milestone (1)
|
Deadline (2)
|
Payment(3)
|
Comments
|
Milestone 1
|
Four (4) months from Development Start Date (4)
|
$10,000,000
|
-
|
Milestone 2 (5)
|
Four (4) months from Development Start Date
|
-
|
Complete
|
Milestone 3
|
Six (6) months from the later of (a) receipt by the Company of Payment for Milestone 1, (b) receipt by the Company from Medtronic of Medtronic deliverables required for Milestone 3, and (c)
receipt by the Company from Medtronic of confirmation of certain due diligence in respect of the Company’s deliverables for Milestone 1
|
$10,000,000
|
-
|
Milestone 4
|
Four (4) months from the later of (a) receipt by the Company of Payment for Milestone 3, (b) receipt by the Company of Medtronic deliverables for Milestone 4, and (c) receipt by the Company
from Medtronic of confirmation of certain due diligence in respect of the Company’s deliverables for Milestone 3
|
$11,000,000 (6),(7)
|
-
|
1. |
Milestone 1, Milestone 3, and Milestone 4 are each defined in the Development Agreement and consist of the completion of the development of certain robotic assisted surgical technologies as described in the Development
Agreement. |
2. |
All as further described and qualified in the Development Agreement. |
3. |
Each payment is conditional upon the corresponding milestone being completed on a timely basis. |
4. |
“Development Start Date” has the meaning ascribed to it in the Development Agreement. |
5. |
Milestone 2 is a non-technology milestone defined as the Company raising at least $18,000,000 of capital between the effective date of the Development Agreement and the date that is four months from the
Development Start Date. The Company has met this milestone. |
6. |
The amount of the payment will be the sum of $10,000,000 and the amount of certain legal, transaction and intellectual property related expenses to be paid to the Company up to a maximum of $1,000,000
pursuant to the Development Agreement and License Agreement. |
7. |
The balance outstanding under the Medtronic Loan (described below) will be offset against the payment for Milestone 4. |
|
Three
Months
Ended
June 30, 2020
|
Three
Months
Ended
March 31, 2020
|
Three
Months
Ended
December 31, 2019
|
Three
Months
Ended
September 30, 2019
|
Three
Months
Ended
June 30, 2019
|
Three
Months
Ended
March 31, 2019
|
Three
Months
Ended
December 31, 2018
|
Three
Months
Ended
September 30, 2018
|
||||||||||||||||||||||||
Net Sales
|
$
|
10,000,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
Net and
Comprehensive
Loss (Income)
from Operations
|
$
|
1,143,199
|
$
|
768,043
|
$
|
(2,412,863
|
)
|
$
|
1,564,196
|
$
|
14,472,866
|
$
|
28,282,880
|
$
|
8,410,702
|
$
|
7,534,456
|
|||||||||||||||
Basic and
Diluted Loss
(Gain) per Share
|
$
|
0.02
|
$
|
0.02
|
$
|
(0.07
|
)
|
$
|
0.05
|
$
|
0.46
|
$
|
1.22
|
$
|
0.41
|
$
|
0.41
|
Contractual
Obligations
existing at the
date of this
MD&A
|
Total
$
|
Less than 1 year
|
1 – 3 years
|
4 – 5 years
|
After 5 years
|
|||||
Capital Leases
|
507,813
|
97,392
|
310,120
|
100,301
|
--
|
|||||
Note Payable(1)
|
1,632,000
|
--
|
1,632,000
|
--
|
--
|
|||||
Supplier
Agreement
|
4,715,231
|
4,715,231
|
--
|
--
|
--
|
|||||
Total Contractual
Obligations
|
6,855,044
|
4,812,623
|
1,942,120
|
100,301
|
--
|
Issue Date
|
Expiry Date
|
Number
Issued
|
Number
Outstanding
|
Exercise Price
(US$)
|
Exercise Price
(CDN$)
|
|
TMD.W.T.F
|
16-Nov-15
|
16-Nov-20
|
233,740
|
233,740
|
48.00
|
|
TMD.W.T.G
|
12-Feb-16
|
12-Feb-21
|
389,027
|
386,694
|
30.00
|
|
TMD.W.T.G
|
23-Feb-16
|
23-Feb-21
|
58,226
|
58,226
|
30.00
|
|
TMD.W.T.H
|
31-Mar-16
|
31-Mar-21
|
501,831
|
501,831
|
36.00
|
|
TMD.W.T.H
|
14-Apr-16
|
31-Mar-21
|
75,275
|
75,275
|
36.00
|
|
TMD.W.T.I
|
20-Sep-16
|
20-Sep-21
|
569,444
|
569,444
|
22.50
|
|
TMD.W.T.I
|
27-Oct-16
|
20-Sep-21
|
67,667
|
67,667
|
22.50
|
|
Not Listed
|
16-Mar-17
|
16-Mar-21
|
357,787
|
355,253
|
15.00
|
|
Not Listed
|
29-Jun-17
|
29-Jun-22
|
1,612,955
|
75,810
|
6.00
|
|
Not Listed
|
21-Jul-17
|
29-Jun-22
|
370,567
|
370,567
|
6.00
|
|
Not Listed
|
24-Aug-17
|
24-Aug-22
|
563,067
|
563,067
|
6.00
|
|
Not Listed
|
5-Dec-17
|
5-Dec-22
|
1,533,333
|
1,533,333
|
18.00
|
|
Not Listed
|
10-Apr-18
|
10-Apr-23
|
1,126,665
|
1,126,665
|
10.50
|
|
Not Listed
|
10-May-18
|
10-Apr-23
|
168,889
|
168,889
|
10.50
|
|
Not Listed1
|
10-Aug-18
|
10-Aug-23
|
7,679,574
|
6,661,068
|
2.920
|
|
Not Listed2
|
21-Mar-19
|
21-Mar-24
|
8,455,882
|
8,455,882
|
3.950
|
|
Not Listed
|
27-Mar-20
|
27-Mar-25
|
3,500,000
|
-
|
0.190
|
|
Not Listed
|
6-May-20
|
6-Nov-25
|
2,757,252
|
64,313
|
0.300
|
|
Not Listed
|
10-Jun-20
|
10-Jun-24
|
9,000,000
|
9,000,000
|
1.000
|
|
39,021,181
|
30,267,724
|
Note 1 - Includes a ratchet clause triggered August 29, 2019 lowering the exercise price from $3.20 to $2.92.
|
Note 2 - Includes a ratchet clause triggered August 29, 2019 lowering the exercise price from $4.00 to $3.95.
|
Date of Financing
|
Anticipated Use of Proceeds
|
Actual Use of Proceeds
|
Explanation
|
March 25, 2020
|
General corporate purposes including resuming the development of the single-port robotic surgical system, instruments, and accessories; funding working capital (including the reduction of
outstanding payables); and capital expenditures.
|
As anticipated, including a limited amount of development activity.
|
none
|
May 6, 2020
|
General corporate purposes including resuming the development of the single-port robotic surgical system, instruments, and accessories; funding working capital (including the reduction of
outstanding payables); and capital expenditures.
|
As anticipated, including a limited amount of development activity.
|
none
|
June 10, 2020
|
General corporate purposes including resuming the development of the single-port robotic surgical system, instruments, and accessories; funding working capital (including the reduction of
outstanding payables); and capital expenditures.
|
As anticipated. The majority of the proceeds are still available for future periods. The Company does not anticipate alternative use of these proceeds.
|
none
|
Type of Securities
|
Number of Common Shares issued or issuable upon conversion
|
Common Shares(1)
|
81,524,320
|
Stock options(2)
|
2,627,376
|
Warrants
|
30,267,724
|
Broker warrants(3)
|
3,265,496
|
(1) |
Refer to details of the offerings in the previous section of this document. |
(2) |
The Company has outstanding options enabling certain employees, directors, officers, and consultants to purchase common shares. Includes 25,765 stock options issued January 2020 with an exercise price of CDN
$0.657 to a director in exchange for services rendered. The options vest immediately and expire 7 years following the date of the grant. |
(3) |
A total of 3,265,496 broker warrants previously issued in connection with offerings of securities by the Company in August 2018, March 2019, March 2020, May 2020, and June 2020 offerings remain outstanding.
Details include the following: |
● |
Pursuant to the agency agreement in respect of the August 2018 offering, in addition to the cash commission paid to the agents, 537,570 broker warrants were issued to the agents. Each broker warrant entitles
the holder thereof to acquire one common share at the price of US $2.50 for a period of 24 months following the closing date. |
|
● |
Pursuant to the March 2019 Agency Agreement, in addition to the cash commission paid to the agents, 591,911 broker warrants were issued to the agents. Each broker warrant entitles the holder thereof to
acquire one common share at the price of US $3.40 for a period of 24 months following the closing date. |
|
● |
Pursuant to the agency agreement in respect of the March 2020 offering, in addition to the cash commission paid to the agents, 490,000 broker warrants were issued to the agents. Each broker warrant entitles
the holder thereof to acquire one common share at the price of US $0.21 for a period of 5 years following the closing date. |
|
● |
Pursuant to the agency agreement in respect of the May 2020 offering, in addition to the cash commission paid to the agents, 386,015 broker warrants were issued to the agents. Each broker warrant entitles the
holder thereof to acquire one common share at the price of US $0.45335 for a period of five and one half (5.5) years following the closing date. |
|
● |
Pursuant to the agency agreement in respect of the June 2020 offering, in addition to the cash commission paid to the agents, 1,260,000 broker warrants were issued to the agents. Each broker warrant entitles
the holder thereof to acquire one common share at the price of US $1.25 for a period of four years following the closing date. |
● |
Revenue from the License Agreement for intellectual property rights and know-how (“Royalty Payment”) is recognized when rights are granted and customer acceptance is established. Compensation received for the performance
of technology transfer services relating to the License Agreement is accounted for separately from the Royalty Payment and will be recognized at the time the service is performed. |
● |
Revenue from the Development Agreement (see note 7) and the allocation of ownership and license rights developed under each milestone is recognized when the rights are granted and customer acceptance is
established. |
● |
Under the terms of the Development Agreement, payment is dependent on when the customer confirms completion of each milestone as defined. Due to the uncertainty of milestone achievements and entitlement of
payments, the Company recognizes revenue only upon acceptance by the customer of work performed and the milestone achieved. |
1. |
Review: I have reviewed the interim
financial report and interim MD&A (together, the “interim filings”) of Titan Medical Inc. (the “issuer”) for the interim period ended
June 30, 2020.
|
2. |
No misrepresentations: Based on my
knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in
light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge,
having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash
flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other
certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’
Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any,
described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it 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 the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the
issuer’s other certifying officer and I used to design the issuer’s ICFR is Integrated Framework (COSO).
|
5.2 |
ICFR – material weakness relating to design: N/A
|
5.3 |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has
disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2020 and ended on
June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
David McNally
Chief Executive Officer
Titan Medical Inc.
|
1. |
Review: I have reviewed the interim
financial report and interim MD&A (together, the “interim filings”) of Titan Medical Inc. (the “issuer”) for the interim period ended
June 30, 2020.
|
2. |
No misrepresentations: Based on my
knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in
light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge,
having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash
flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other
certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’
Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any,
described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer and I have, as at the end of the period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is
recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it 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 the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the
issuer’s other certifying officer and I used to design the issuer’s ICFR is Integrated Framework (COSO).
|
5.2 |
ICFR – material weakness relating to design: N/A
|
5.3 |
Limitation on scope of design: N/A
|
6. |
Reporting changes in ICFR: The issuer has
disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2020 and ended on
June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
Stephen D. Randall
Chief Financial Officer
Titan Medical Inc.
|
Cover Page |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document period end date | Jun. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | TITAN MEDICAL INC |
Entity Central Index Key | 0000840551 |
Current Fiscal Year End Date | --12-31 |
Unaudited Condensed Interim Consolidated Balance Sheets - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Current Assets: | ||
Cash and cash equivalents | $ 28,689,757 | $ 814,492 |
Amounts receivable | 142,819 | 84,097 |
Deposits | 481,400 | 481,400 |
Prepaid expense | 904,145 | 369,453 |
Total Current Assets | 30,218,121 | 1,749,442 |
Right of use assets - Leases | 440,328 | 30,394 |
Patent Rights | 1,688,485 | 1,601,745 |
Total Assets | 32,346,934 | 3,381,581 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 8,376,796 | 11,412,896 |
Current portion of lease liability | 94,474 | 21,071 |
Warrant liability | 19,770,834 | 3,621,444 |
Total Current Liabilities | 28,242,104 | 15,055,411 |
Note payable | 1,653,822 | |
Long-term lease liability | 367,038 | 8,001 |
Total Liabilities | 30,262,964 | 15,063,412 |
Shareholders' Equity (Deficiency) | ||
Share Capital | 210,101,795 | 194,859,415 |
Contributed Surplus | 8,738,190 | 8,303,527 |
Deficit | (216,756,015) | (214,844,773) |
Shareholders' Equity (Deficiency) | 2,083,970 | (11,681,831) |
Total Liabilities and Deficiency | $ 32,346,934 | $ 3,381,581 |
Unaudited Condensed Interim Consolidated Statements of Net and Comprehensive Loss - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Profit or loss [abstract] | ||||
Revenue | $ 10,000,000 | $ 10,000,000 | ||
Expenses | ||||
Amortization | 35,475 | 7,291 | 49,570 | 13,466 |
Consulting fees | 83,744 | 451,068 | 195,869 | 720,497 |
Stock based compensation | 206,087 | 740,051 | 434,663 | 991,408 |
Insurance | 122,415 | 116,123 | 245,577 | 234,612 |
Management salaries and fees | 605,277 | 749,880 | 1,146,872 | 1,398,466 |
Marketing and investor relations | 8,843 | 102,487 | 17,487 | 208,676 |
Office and general | 45,955 | 77,136 | 185,842 | 194,407 |
Professional fees | 1,031,457 | 303,460 | 1,389,943 | 406,845 |
Rent | 5,960 | 16,515 | 13,201 | 28,751 |
Research and Development | 121,463 | 18,360,674 | 167,582 | 32,769,286 |
Travel | 1,622 | 80,631 | 12,760 | 147,995 |
Interest charges | 252,542 | 465,239 | ||
Foreign exchange (gain) | 24,580 | 148,689 | (48,923) | 41,047 |
Total expenses | 2,545,420 | 21,154,005 | 4,275,682 | 37,155,456 |
Net Earnings (Loss) from Operations | 7,454,580 | (21,154,005) | 5,724,318 | (37,155,456) |
Finance Income (cost) | ||||
Interest | 4,831 | 71,187 | 6,574 | 94,218 |
Gain on settlement | 1,839,626 | 1,839,626 | ||
Gain (loss) on change in fair value of warrants | (8,782,920) | 6,609,952 | (7,665,444) | (3,866,673) |
Warrant liability issue cost | (1,659,316) | (1,816,316) | (1,827,835) | |
Finance Income (cost) | (8,597,779) | 6,681,139 | (7,635,560) | (5,600,290) |
Net and Comprehensive Loss For the Period | $ (1,143,199) | $ (14,472,866) | $ (1,911,242) | $ (42,755,746) |
Basic and Diluted Loss Per Share | $ (0.02) | $ (0.46) | $ (0.04) | $ (1.57) |
Weighted Average Number of Common Shares Basic and Diluted | 60,764,929 | 31,150,237 | 52,518,608 | 27,190,063 |
Unaudited Condensed Interim Consolidated Statements of Cash Flows - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|||
Operating activities: | ||||||
Net loss for the period | $ (1,143,199) | $ (14,472,866) | $ (1,911,242) | $ (42,755,746) | ||
Items not involving cash: | ||||||
Amortization | 35,475 | 7,291 | 49,570 | 13,466 | ||
Stock based compensation | 206,087 | 740,051 | 434,663 | 991,408 | ||
Warrant liability-fair value adjustment | 8,782,920 | (6,609,952) | 7,665,444 | 3,866,673 | ||
Warrant liability-foreign exchange adjustment | 12,997 | 142,682 | (38,094) | 36,625 | ||
Non-cash issue costs | 737,894 | 764,134 | ||||
Non-cash settlement included in payables | 1,839,626 | 2,090,200 | ||||
Non-cash note payable expenses and accrued interest | 153,822 | 153,822 | ||||
Changes in non-cash working capital items: | ||||||
Amounts receivable, prepaid expenses and deposits | (766,837) | 1,294,599 | (593,417) | (283,330) | ||
Accounts payable and accrued liabilities | (3,647,795) | 5,736,133 | (4,875,714) | 5,783,889 | ||
Cash from (used) in operating activities | 6,210,990 | (13,162,062) | 3,739,366 | (32,347,015) | ||
Financing activities: | ||||||
Net proceeds from issuance of common shares and warrants | [1] | 19,272,277 | (2,997) | 22,749,702 | 31,374,911 | |
Proceeds from note payable | 1,500,000 | 1,500,000 | ||||
Repayment of lease liabilities | (6,299) | (10,243) | ||||
Cash provided by financing activities | 20,765,978 | (2,997) | 24,239,459 | 31,374,911 | ||
Investing Activities: | ||||||
Additions of patents | (47,430) | (125,198) | (103,560) | (178,956) | ||
Cash used in investing activities | (47,430) | (125,198) | (103,560) | (178,956) | ||
Increase (Decrease) in cash and cash equivalents | 26,929,538 | (13,290,257) | 27,875,265 | (1,151,060) | ||
Cash and cash equivalents, beginning of the period | 1,760,219 | 23,610,440 | 814,492 | 11,471,243 | ||
Cash and cash equivalents, end of the period | 28,689,757 | 10,320,183 | 28,689,757 | 10,320,183 | ||
Cash and cash equivalents comprise: | ||||||
Cash | 970,690 | 1,392,741 | 970,690 | 1,392,741 | ||
Cash Equivalents | 27,719,067 | 8,927,442 | 27,719,067 | 8,927,442 | ||
Cash and cash equivalents, end of the period | $ 28,689,757 | $ 10,320,183 | $ 28,689,757 | $ 10,320,183 | ||
|
Description of Business |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 | |||
Description Of Business [Abstract] | |||
Description of Business |
Nature of Operations:
Titan Medical Inc.’s (“Titan” or the “Company”), business continues to be in the research and
development stage and is focused on the continued research and development of its single-port robotic surgical system. In the near term, the Company will continue efforts to complete product development and proceed to pre-clinical and confirmatory
human studies and satisfaction of appropriate regulatory requirements. Upon receipt of regulatory approvals, the Company will transition from the research and development stage to the commercialization stage. The completion of these latter stages
will be subject to the Company receiving additional funding
The Company is incorporated in Ontario, Canada in accordance with the Business Corporations Act.
The address of the Company’s corporate office and its principal place of business is Toronto, Canada.
In June 2020, the Company established a wholly owned subsidiary, Titan Medical USA Inc.
(“Titan USA” or “Subsidiary”), a corporation that is duly organized and existing under the laws of Delaware.
Basis
of Preparation:
(a) Statement of Compliance
These condensed interim consolidated financial statements for the three and six months ending
June 30, 2020, have been prepared in accordance with International Accounts Standards (“IAS”) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (“IASB”) on a basis consistent with the Company’s 2019 annual
financial statements.
These condensed interim consolidated financial statements were authorized for issue by the
Board of Directors on August 12, 2020.
(b) Basis of Measurement
These condensed interim consolidated financial statements have been prepared on the historical
cost basis except for the revaluation of the warrant liability, which is measured at fair value.
(c) Basis of Consolidation
These condensed interim consolidated financial statements incorporate the financial statements
of the Company and its wholly owned subsidiary, Titan USA. The accounts of the subsidiary were prepared for the same reporting period as the Company, using consistent accounting policies. Intercompany transactions, balances and unrealized gains or
losses on transactions have been eliminated.
(d) Functional and Presentation Currency
These condensed interim consolidated financial statements are presented in United States
dollars (“U.S.” or “US”), which is the Company’s functional and presentation currency.
(e) Use of Estimates and Judgements
The preparation of financial statements in conformity with IAS 34, Interim Financial Reporting,
requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of provisions at the date of the financial statements and the reported amount of expenses during the period. Financial
statement items subject to significant judgement include: the measurement of stock-based compensation, the fair value estimate of the initial measurement of lease and warrant liabilities and the remeasurement of unlisted warrants. While management
believes that the estimates and assumptions are reasonable, actual results may differ.
These condensed interim financial statements have been prepared in accordance with accounting
principles applicable to a going concern, which contemplates that the Company will be able to realize its assets and settle its liabilities as they come due during the normal course of operations for the foreseeable future. The Company has
shareholders’ equity of $2,083,970 including losses for the six months ended June 30, 2020 of $1,911,242. The working capital as at June 30, 2020 is $21,746,851, excluding warrant liability. As a result of its recent financing activities, the
Company has cash and cash equivalents of $28,689,757 at June 30, 2020.
The Company currently does not generate any revenue (other than from its agreements with
Medtronic,) as defined herein - see Notes 2 and 7) and interest income on its cash balances) and accordingly, it is primarily dependent upon equity financing for any additional funding required to complete its research and development relating to
its single-port robotic surgical system and operating expenses. If additional funding is not available, the pace of the Company’s product development plan may be reduced. These conditions indicate a material uncertainty that may cast
significant doubt on the ability of the Company to continue as a going concern if additional funding is not secured. However, management believes that the Company has sufficient funds to meet its obligations under a reduced development plan, if
necessary, for the ensuing twelve months.
The Black-Scholes model used by the Company to determine fair values of stock options and
warrants was developed for use in estimating the fair value of the stock options and warrants.
|
Summary of Significant Accounting Policies |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2020 | |||||
Summary Of Significant Accounting Policies [Abstract] | |||||
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Revenue
Recognition
The Company currently recognizes revenue when it has persuasive evidence of a contract,
performance obligations have been identified and satisfied, payment terms have been identified, and it is probable that the Company will collect the consideration it is entitled to. On June 3, 2020, the Company entered into a License Agreement
(see note 7) with a U.S. affiliate of Medtronic plc (“Medtronic”), whereby the Company is providing exclusive access to certain IP rights relating to robotic assisted surgical technologies. The Company is accounting for the license fee at the point
in time when the rights were transferred.
Under the terms of the Development Agreement, payment is dependent on when the customer
confirms completion of each milestone as defined. Due to the uncertainty of milestone achievements and entitlement of payments, the Company recognizes revenue only upon acceptance by the customer of work performed and the milestone achieved.
(b) Warrant Liability
Certain of the Company’s warrants have exercise prices that are not fixed and, in accordance
with IAS 32, must be recorded as a derivative financial liability. This applies both in the case where the Company’s warrants are denominated in a currency (Canadian dollars) other than the Company’s functional currency (U.S. dollars), and when a
warrant is issued with a cashless exercise option. In each case, these warrants are initially measured at fair value and subsequent changes in fair value are recorded through Net and Comprehensive Loss for the period.
A proportional amount of costs associated with the issue of shares and warrants is allocated
to the warrants and recorded through Net and Comprehensive Loss for the period. At each balance sheet date, the Company reviews the classification of each Warrant Liability to determine whether the appropriate classification remains with
Liabilities or requires reclassification to Equity.
At each balance sheet date, the Warrant Liability of listed warrants is adjusted to fair value
measured at the market price of the listed warrants and the Warrant Liability of unlisted warrants is adjusted to fair value using the Black-Scholes model with the change in fair value recorded through Net and Comprehensive Loss for the period.
Prior to March 31, 2019, the Black-Sholes model for the unlisted warrants was determined using a comparable warrant quoted in an active market, adjusted for differences in the terms of the warrant. Since March 31, 2019, it was determined that the
comparable warrant was no longer an effective benchmark and the Company began to use the market price and volatility of the Company’s common shares adjusted for differences in the terms of the warrant.
(c) Fair
Value Measurement
The accounting guidance for fair value measurements prioritizes the inputs used in measuring fair
value into the following hierarchy:
Level
1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level
2 – Inputs other than quoted prices included within Level 1 that are directly or indirectly observable;
Level
3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.
The fair value of the warrant liability relating to listed and unlisted warrants is initially
based on Level 2 significant observable inputs and at subsequent dates is adjusted using Level 1 inputs for listed warrants and Level 2 inputs for unlisted warrants.
|
Right of Use Assets - Lease |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Presentation of leases for lessee [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Right of Use Assets - Lease | 3. RIGHT
OF USE ASSETS – LEASE
The Company entered into an 18-month lease for its corporate head office in Toronto, Ontario
in November 2019. The Company recognized a right-of-use asset offset by a prepayment and a lease liability in the statement of financial position,
initially measured at the present value of future lease payments (net of non-lease general expenses which are expensed as incurred). For the period ended June 30, 2020, the Company recognized $11,330 of amortization and $8,165 in interest
expense relating to this lease and repaid $8,649 of the lease liability.
On September 4, 2019, the Company entered into a lease agreement with a third party to lease
certain office space in Chapel Hill, North Carolina. The term of the lease is 62 full months and the average monthly base rent is $8,320. The lease commencement date was April 1, 2020, the date the space was ready-for-use. As of April 1, 2020, the
Company recognized a right-of-use asset and a lease liability of $442,684 relating to this lease. For the period ended June 30, 2020, the Company recognized $21,420 of amortization and $6,457 in interest expense relating to this lease and repaid
$1,594 of the lease liability.
|
Patent Rights |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Patent Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patent Rights | 4. PATENT RIGHTS
|
Accounts payable and accrued liabilities |
6 Months Ended |
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Jun. 30, 2020 | |
Accounts Payable And Accrued Liabilities [Abstract] | |
Accounts Payable And Accrued Liabilities | 5. ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES
The balance of accounts payable and accrued liabilities at June 30, 2020 is $8,376,796 (December 31, 2019 –
$11,412,896). The majority of the payables relate to amounts owed to the Company’s product development suppliers amounting to $6,185,381, with $1,572,920 relating to insurance, legal and audit and the balance relating to regular business
operations.
Naglreiter Consulting Litigation
In late 2019, the Company became involved in litigation with Naglreiter
Consulting, LLC. On June 8, 2020, the Company entered into a settlement agreement pursuant to which (i) a sum of $1,050,000 was paid to Naglreiter, (ii) Naglreiter returned certain personal property and related electronic data in its possession,
(iii) and the pending litigation was dismissed. The Company recognized a gain on settlement of $1,839,626 in the period.
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Warrant Liability |
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Warrant Liability [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant Liability | 6. WARRANT LIABILITY
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Note Payable |
6 Months Ended |
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Jun. 30, 2020 | |
Note Payable | |
Note payable | 7. NOTE PAYABLE
On June 3, 2020, the Company entered into a development and license agreement (the
“Development Agreement”) with Medtronic in connection with the development of robotic assisted surgical technologies and a separate license agreement (the “License Agreement”) with Medtronic in respect of certain of already developed technologies.
On April 28, 2020, the Company received a $1.5 million loan from Medtronic and, on June 3, 2020, the loan was amended and restated (the “Note”) and the Company executed and delivered a security agreement in favour of Medtronic (the “Security
Agreement”). The Note has as principal amount of $1.5 million plus $132,000 equal to certain legal, transaction and intellectual property related expenses incurred by Medtronic pursuant to the Medtronic agreements and will bear interest at the
rate of 8% per annum. The unpaid principal balance owing under the Note, together with any accrued and unpaid interest and all other unpaid obligations under the Note, shall be due and payable in full on the earliest to occur of: (i) June 3, 2023, (ii) a Change
of Control (as defined in the Note), or (iii) the completion of the last milestone under the Development Agreement. For the period ended June 30, 2020, the Note has accrued interest of $21,822.
The Security Agreement grants a security interest in all of the Company’s present and future
property including all personal property, inventory, equipment and intellectual property to the Corporate Lender. In addition, Medtronic’s rights and powers include without limitation (a) exercising and enforcing all rights and remedies of a holder
of collateral as if Medtronic were the absolute owner of the collateral, (b) collection of any proceeds arising in respect of all of the Company’s property pledged as security for the loan, (c) license or sublicense, whether on an exclusive or
nonexclusive basis, of any of the Company’s intellectual property for such term and on such conditions and in such manner as Medtronic in its sole judgment determines (taking into account such provisions as may be necessary to protect and preserve
such intellectual property), and (d) the right to enforce its security in the event of a default which may include the appointment of a receiver by instrument or order of the court.
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Share Capital |
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Share Capital [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital | 8. SHARE CAPITAL
a) Authorized: unlimited number of common shares, no par
Issued: 75,581,381 (December 31, 2019: 39,907,681)
Exercise prices of units, certain warrants and options are presented in Canadian currency when they are
exercisable in Canadian dollars unless otherwise noted.
June 2020 Offering
On June 10, 2020, the Company completed an offering of securities made pursuant to an agency agreement dated March
17, 2020 between the Company and H.C. Wainwright & Co., LLC (“Wainwright”) for the purchase and sale of 6,500,000 common shares (the “Common Shares”), 11,500,000 common share equivalents (each, a “June 2020 Common Share Equivalent”) and
9,000,000 Common Share purchase warrants (each a “June 2020 Common Warrant”) for total gross proceeds of approximately $18,000,000 ($16,500,000 net of closing cash costs including cash commissions described below). The Common Shares, June 2020
Common Share Equivalent and June 2020 Common Warrants were sold in fixed combinations at an offering price of $1.00, consisting of one Common Share and one-half June 2020 Common Warrant or one June 2020 Common Share Equivalent and one-half June
2020 Common Warrant. Each June 2020 Common Warrant is convertible into one Common Share at a conversion price of $1.00 per Common Share for a period of four (4) years following the date of the closing of the offering. Each June 2020 Common Share
Equivalent is convertible into one Common Share at a conversion price of $0.0001 and will expire when converted in full.
Pursuant to the placement agent agreement, in addition to the cash commission paid to Wainwright of $1,260,000,
broker warrants were issued to Wainwright which entitle the holder to purchase 1,260,000 Common Shares at an exercise price of US$1.25 per share prior to expiry on June 10, 2024.
Of the 11,500,000 June 2020 Common Stock Equivalents, 8,000,000 were converted between June 10, 2020 and June 30,
2020 for total proceeds of $800.
May 2020 Financing
On May 6, 2020, the Company completed a registered direct offering of securities made pursuant to an agency
agreement dated March 17, 2020 between the Company and Wainwright that provide for the purchase and sale of 5,514,504 Common Shares of the Company at a per share purchase price of US $0.36268 per Common Share and 2,757,252 unregistered Common Share
purchase warrants (each, a “May 2020 Warrant”), resulting in total gross proceeds of $2,000,000 ($1,575,000 net of estimated closing cash costs including cash commission described below). Each May Warrant is exercisable to purchase one Common Share
at an exercise price of US $0.3002 per Common Share for a period of five and one-half (5.5) years following the date of closing of the offering.
Pursuant to the placement agency agreement, in addition to the cash commission paid to Wainwright of $140,000,
broker warrants were issued to Wainwright which entitle the holder to purchase 386,015 Common Shares at a price of US $0.45335 per share prior to expiry on November 6, 2025.
March 2020 Offering
On March 27, 2020, the Company completed an offering of securities made pursuant to an agency agreement dated
March 17, 2020 between the Company and Wainwright for the purchase and sale of 7,000,000 common shares of the Company (the “Common Shares”) at a per share purchase price of US $0.17 per Common Share and 3,500,000 Common Share purchase warrants
(each, a “March Warrant”), resulting in total gross proceeds of $1,190,000 ($862,294 net of closing cash costs including cash commission described below). Each March Warrant is exercisable to purchase one Common Share at an exercise price of US
$0.19 per Common Share for a period of five years following the date of closing of the offering. The warrants were valued at $475,300 based on the value determined by the Black-Scholes model and the balance of $714,700 was allocated to common
shares.
Pursuant to the placement agency agreement, in addition to the cash commission paid to Wainwright of $83,300,
broker warrants were issued to Wainwright which entitle the holder to purchase 490,000 Common Shares at a price of US $0.2125 per share prior to expiry on March 27, 2025.
Second Aspire Agreement
On December 23, 2019, the Company entered into a common share purchase agreement (the “Second Aspire Agreement”) with Aspire Capital
Fund, LLC (“Aspire Capital”) whereby Aspire Capital committed to purchase up to $35 million of common shares of Titan (“Common Shares”) at Titan’s request from time to time, until June 23, 2022. On commencement of the Second Aspire Agreement, Titan
issued to Aspire Capital 973,000 Common Shares, as consideration for entering into the Second Aspire Agreement. The value of the Common Shares issued of $423,440, was included in capital, offset by a fee of the same amount plus $35,122 for
additional costs incurred.
Between January 3, 2020 and February 13, 2020, the Company issued 4,408,048 common shares pursuant to the
Second Aspire Agreement as outlined in the following table:
January 2020 Equity Transaction
On January 3, 2020, the Company announced that Cambridge Design Partnership Ltd. (“Cambridge”) had subscribed
for common shares of the Company. The Company issued 501,148 Common Shares at a unit price of $0.50 for satisfaction of the trade payable with Cambridge of $250,574.
First Aspire Agreement
On August 29, 2019, the Company entered into a common share purchase agreement (the “First Aspire Agreement”) with Aspire Capital
whereby Aspire Capital committed to purchase up to $35 million of common shares of Titan at Titan’s request from time to time, until February 28, 2022. On commencement of the First Aspire Agreement, Titan immediately sold to Aspire 1,777,325 Common
Shares, representing 5.3% of the Common Shares then issued and outstanding, at a price of US $1.6879 per Common Share for gross proceeds of $3.0 million and issued to Aspire Capital 639,837 Common Shares, representing 1.9% of the Common Shares then issued and outstanding, as
consideration for entering into the First Aspire Agreement. Northland Securities, Inc. acted as the Company’s agent and financial advisor in connection with the offering and pursuant to an agency agreement, was paid a cash fee of $160,000. Gross
proceeds of $3.0 million, net of costs and fees of $417,113, was included in capital.
Subsequent to August 29, 2019 and subject to the First Aspire Agreement, the Company issued
Common Shares to Aspire as outlined in the following table:
March 2019 Equity Offering
On March 21, 2019, Titan completed an offering of securities made pursuant to an agency
agreement dated March 18, 2019 between the Company and Bloom Burton Securities Inc. (“Bloom Burton”). The Company sold 8,455,882 units under the offering at a price of US $3.40 per Unit for gross proceeds of approximately $28,750,000 ($25,426,744
net of closing cost including cash commission of $2,012,500). Each unit consisted of one Common Share of the Company and one Common Share purchase warrant, each warrant entitles the holder thereof to acquire one Common Share of the Company at an
exercise price of US $4.00 and expiring March 21, 2024. The warrants were valued at $15,897,059 based on the value determined by the Black-Scholes model and the balance of $12,852,941 was allocated to common shares.
Pursuant to the agency agreement, in addition to the cash commission paid to Bloom Burton, broker
warrants were issued to Bloom Burton which entitle the holder to purchase 591,911 Common Shares at a price of US $3.40 per share prior to expiry on March 21, 2021. The broker warrants were valued using the Black-Scholes model and the value of
$864,190 was accounted for as an increase in the closing costs and allocated between the shares and the warrants.
During the quarter ended March 31, 2019, 1,018,506 warrants were exercised for total proceeds of
$3,259,219. The fair value of the exercised warrants was $3,742,824 which was reclassed from warrant liability to common stock.
b) Stock Options and Compensation Options
Titan has reserved and set aside up to 15% of the issued and outstanding shares of Titan for
granting of options to employees, officers, consultants and advisors. At June 30, 2020, 10,082,256 common shares (December 31, 2019: 5,986,152) were available for issue in accordance with the Company’s stock option plan. The terms of these options
are determined by the Board of Directors.
On January 28, 2020, the Company issued 25,765 stock options with an
exercise price of CDN $0.657 to a director in exchange for services rendered. The options vest immediately and have a contractual life of 7 years.
For the period ended June 30, 2020, $434,663 of stock-compensation expense was recorded (June
30, 2019 – $991,408).
A summary of the status of the Company’s outstanding stock options as of June 30, 2020 and
December 31, 2019 and changes during the periods ended on those dates is presented in the following table:
The weighted-average remaining contractual life and weighted-average exercise price of options outstanding and of
options exercisable as at June 30, 2020 are as follows:
The weighted average exercise price of Canadian dollar denominated options outstanding is CDN $5.46 and CDN $6.10 for options that are
exercisable. The weighted average exercise price of US dollar denominated options outstanding is US $3.19 and US $3.02 for options that are exercisable.
Options are granted to directors, officers, employees, and consultants at various times. Options are to be settled
by physical delivery of shares.
Inputs for Measurement of Grant Date Fair Values
The grant date fair value of all share-based payment plans was measured based on the Black-Scholes model. Expected
volatility was estimated by considering historic average share price volatility. The weighted average inputs in the original currency of the grants (CDN$ or US$) used in the measurement of fair values at grant date of the share-based option grants
for the six months ended June 30, 2020 and 2019 are as follows:
c) Warrants
In addition to the warrants accounted for as a liability (see Note 5), at June 30, 2020, the Company has
3,265,496 broker warrants that are issued, outstanding and exercisable (December 31, 2019 - 1,219,276). These broker warrants expire between August 10, 2020 and November 6, 2025 (December 31, 2019 - broker warrants had expiry dates between April
10, 2020 and March 21,2021).
|
Commitments |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Commitments [abstract] | |
Commitments | 9. COMMITMENTS
As part of its program of research and development around the single-port robotic surgical system, the Company has
outsourced certain aspects of the design and development to third party technology and development companies. At June 30, 2020, $4,132,120 in purchase orders remain outstanding (December 31, 2019 - $1,327,294). The Company also has on deposit with
a U.S. supplier $481,400 to be applied against future invoices (December 31, 2019 - $481,400).
|
Related Party Transactions |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | 10. RELATED PARTY TRANSACTIONS
During the six months ended June 30, 2020, transactions between the Company’s directors, officers and other
related parties were related to compensation matters in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
Compensation paid to executive officers for the three and six months ended June 30, 2020 amounted to $218,596 and
$453,531 compared to $446,911 and $961,163 for the three and six months ended June 30, 2019.
|
Revenues |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
Revenues | 11. REVENUES
On June 3, 2020, the Company entered into a License Agreement with Medtronic, whereby the Company is providing
exclusive access to certain IP rights relating to robotic assisted surgical technologies. The Company is accounting for the license fee at the point in time when the rights were transferred.
|
Capital Management |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Capital Management | |
Capital Management | 12. CAPITAL
MANAGEMENT
The Company is not subject to externally imposed capital requirements other than the Nasdaq stock exchange (“Nasdaq”) requirement that the Company maintain a minimum bid price of $1.00. The Company currently does not meet this requirement and has until February 1, 2021 to
regain compliance otherwise the Company’s securities are subject to potential delisting from Nasdaq.
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. SUBSEQUENT EVENTS
Common Stock Issued
Subsequent to June 30, 2020, 2,442,939 common shares were issued upon the exercise of warrants for gross
proceeds of $733,370 and 3,500,000 common shares were issued upon the conversion of common shares equivalents for additional proceeds of $350.
Stock Options
On July 30, 2020, the Company issued 22,425 stock options with an exercise price of CDN $1.266 to a director in
exchange for services rendered. The options vest immediately and have a contractual life of 7 years. The Company also issued 1,350,000 options to
certain employees of the Company with an exercise price of US $0.962. These options vest 25% annually over four years.
COVID-19
Since December 31, 2019, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”,
has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, continue to cause material
disruption to business globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to
stabilize economic conditions. The Company operates from two offices, one in Toronto, Ontario and a second in Chapel Hill, North Carolina. The Company’s offices were temporarily closed in March 2020 while employees continued to work virtually. In
June 2020, the Company began cautious and controlled return to offices on an as needed basis and will continue to do so for the foreseeable future. The pandemic, to date, has not had a significant impact on the deliverables by the Company’s
suppliers.
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2020 | |||||
Summary Of Significant Accounting Policies [Abstract] | |||||
Revenue Recognition | (a) Revenue
Recognition
The Company currently recognizes revenue when it has persuasive evidence of a contract,
performance obligations have been identified and satisfied, payment terms have been identified, and it is probable that the Company will collect the consideration it is entitled to. On June 3, 2020, the Company entered into a License Agreement
(see note 7) with a U.S. affiliate of Medtronic plc (“Medtronic”), whereby the Company is providing exclusive access to certain IP rights relating to robotic assisted surgical technologies. The Company is accounting for the license fee at the point
in time when the rights were transferred.
Under the terms of the Development Agreement, payment is dependent on when the customer
confirms completion of each milestone as defined. Due to the uncertainty of milestone achievements and entitlement of payments, the Company recognizes revenue only upon acceptance by the customer of work performed and the milestone achieved.
|
||||
Warrant Liability | (b) Warrant Liability
Certain of the Company’s warrants have exercise prices that are not fixed and, in accordance
with IAS 32, must be recorded as a derivative financial liability. This applies both in the case where the Company’s warrants are denominated in a currency (Canadian dollars) other than the Company’s functional currency (U.S. dollars), and when a
warrant is issued with a cashless exercise option. In each case, these warrants are initially measured at fair value and subsequent changes in fair value are recorded through Net and Comprehensive Loss for the period.
A proportional amount of costs associated with the issue of shares and warrants is allocated
to the warrants and recorded through Net and Comprehensive Loss for the period. At each balance sheet date, the Company reviews the classification of each Warrant Liability to determine whether the appropriate classification remains with
Liabilities or requires reclassification to Equity.
At each balance sheet date, the Warrant Liability of listed warrants is adjusted to fair value
measured at the market price of the listed warrants and the Warrant Liability of unlisted warrants is adjusted to fair value using the Black-Scholes model with the change in fair value recorded through Net and Comprehensive Loss for the period.
Prior to March 31, 2019, the Black-Sholes model for the unlisted warrants was determined using a comparable warrant quoted in an active market, adjusted for differences in the terms of the warrant. Since March 31, 2019, it was determined that the
comparable warrant was no longer an effective benchmark and the Company began to use the market price and volatility of the Company’s common shares adjusted for differences in the terms of the warrant.
|
||||
Fair Value Measurement | (c) Fair
Value Measurement
The accounting guidance for fair value measurements prioritizes the inputs used in measuring fair
value into the following hierarchy:
Level
1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level
2 – Inputs other than quoted prices included within Level 1 that are directly or indirectly observable;
Level
3 – Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.
The fair value of the warrant liability relating to listed and unlisted warrants is initially
based on Level 2 significant observable inputs and at subsequent dates is adjusted using Level 1 inputs for listed warrants and Level 2 inputs for unlisted warrants.
|
Right of Use Assets - Lease (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Presentation of leases for lessee [abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Right of Use Asset |
|
Patent Rights (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patent Rights [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Patent Rights |
|
Warrant Liability (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant Liability [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Warrant Liability |
|
Share Capital (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of shares sold under share purchase agreement | Between January 3, 2020 and February 13, 2020, the Company issued 4,408,048 common shares pursuant to the
Second Aspire Agreement as outlined in the following table:
Subsequent to August 29, 2019 and subject to the First Aspire Agreement, the Company issued
Common Shares to Aspire as outlined in the following table:
|
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Summary of Options Outstanding | A summary of the status of the Company’s outstanding stock options as of June 30, 2020 and
December 31, 2019 and changes during the periods ended on those dates is presented in the following table:
|
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Summary of Weighted-Average Remaining Contractual Life and Weighted-Average Exercise Price Options Outstanding and Options Exercisable on Exercise Prices | The weighted-average remaining contractual life and weighted-average exercise price of options outstanding and of
options exercisable as at June 30, 2020 are as follows:
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Summary of Inputs Used in Measurement of Fair Values at Grant Date of Share Based Option Plan | The weighted average inputs in the original currency of the grants (CDN$ or US$) used in the measurement of fair values at grant date of the share-based option grants
for the six months ended June 30, 2020 and 2019 are as follows:
|
Related Party Transactions (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Common Shares Outstanding and Percentage Control of the Company |
|
Description of business - Additional Information (Detail) - USD ($) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Description Of Business [Abstract] | ||||||
Shareholders' deficiency | $ 2,083,970 | |||||
Comprehensive income (loss) | 1,911,242 | |||||
Working capital deficiency | 21,746,851 | |||||
Cash and cash equivalents | $ 28,689,757 | $ 1,760,219 | $ 814,492 | $ 10,320,183 | $ 23,610,440 | $ 11,471,243 |
Right of Use Assets - Lease - Summary Of Right of Use Asset (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance at December 31, 2019 | $ 30,394 |
Additions during the period | 442,684 |
Amortization in the period | (32,750) |
Balance at June 30, 2020 | 440,328 |
Cost [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance at December 31, 2019 | 34,172 |
Additions during the period | 442,684 |
Amortization in the period | |
Balance at June 30, 2020 | 476,856 |
Accumulated Amortization [member] | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Balance at December 31, 2019 | (3,778) |
Additions during the period | |
Amortization in the period | (32,750) |
Balance at June 30, 2020 | $ (36,528) |
Right of Use Assets - Lease - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 01, 2019 |
Sep. 04, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Apr. 02, 2020 |
|
Disclosure of quantitative information about right-of-use assets [line items] | |||||||
Repayment of lease liabilities | $ 6,299 | $ 10,243 | |||||
Right-of-use asset | $ 442,684 | ||||||
Lease liability | $ 442,684 | ||||||
Toronto Office [Member] | |||||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||||
Operating lease term | 18 months | ||||||
Right of use asset amortization | 11,330 | ||||||
Interest expenses on lease | 8,165 | ||||||
Repayment of lease liabilities | 8,649 | ||||||
Chapel Hill Office [Member] | |||||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||||
Right of use asset amortization | 21,420 | ||||||
Interest expenses on lease | 6,457 | ||||||
Lease term | 62 months | ||||||
Lease rent | $ 8,320 | ||||||
Repayment of lease liabilities | $ 1,594 |
Patent Rights - Summary of Patent Rights (Detail) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | $ 1,601,745 | $ 1,172,485 |
Additions during the year | 103,560 | 53,758 |
Amortization in the year | (16,820) | (6,175) |
Ending balance | 1,688,485 | 1,220,068 |
Cost [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 1,856,750 | 1,398,713 |
Additions during the year | 103,560 | 53,758 |
Amortization in the year | ||
Ending balance | 1,960,310 | 1,452,471 |
Accumulated Amortization & Impairment Losses [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (255,005) | (226,228) |
Additions during the year | ||
Amortization in the year | (16,820) | (6,175) |
Ending balance | $ (271,825) | $ (232,403) |
Accounts payable and accrued liabilities - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 08, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Accrued Expenses And Other Liabilities [Line Items] | ||||||
Accounts payable and accrued liabilities | $ 8,376,796 | $ 8,376,796 | $ 11,412,896 | |||
Gain on settlement | 1,839,626 | 1,839,626 | ||||
Naglreiter Consulting, LLC [Member] | ||||||
Accrued Expenses And Other Liabilities [Line Items] | ||||||
Gain on settlement | 1,839,626 | |||||
Payment under litigtion settlement | $ 1,050,000 | |||||
Research And Development Suppliers [Member] | ||||||
Accrued Expenses And Other Liabilities [Line Items] | ||||||
Accounts payable and accrued liabilities | 6,185,381 | 6,185,381 | ||||
Legal And Insurance Service Provider [Member] | ||||||
Accrued Expenses And Other Liabilities [Line Items] | ||||||
Accounts payable and accrued liabilities | $ 1,572,920 | $ 1,572,920 |
Warrant Liability - Summary of Warrant Liability (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Mar. 31, 2019 |
|
Disclosure of classes of share capital [line items] | ||||||
Number of Warrants, Opening Balance | 21,203,411 | 13,901,859 | 13,901,859 | |||
Number of Warrants, exercised | (3,750,000) | (3,750,000) | (1,018,506) | (1,018,506) | ||
Number of Warrants, expired | (135,824) | |||||
Number of Warrants, Ending Balance | 32,710,663 | 32,710,663 | 21,203,411 | |||
Warrant liability, Opening Balance | $ 3,621,444 | $ 11,250,167 | $ 11,250,167 | |||
Warrant liability, exercised | (2,170,660) | (3,742,824) | ||||
Warrant liability, expired | ||||||
Warrant liability, Foreign exhange adjustment during the period | $ 12,997 | $ 142,682 | (38,094) | 36,625 | 17,687 | |
Warrant liability, Fair value adjustment during the period | 8,782,920 | $ (6,609,952) | 7,665,444 | $ 3,866,673 | (19,800,645) | |
Warrant liability, Ending Balance | $ 19,770,834 | $ 19,770,834 | $ 3,621,444 | |||
Issue of warrants expiring, March 21, 2024 [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of Warrants, issued | 8,455,882 | |||||
Warrant liability, issued | $ 15,897,059 | |||||
Issue of warrants expiring, March 27, 2025 [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of Warrants, issued | 3,500,000 | |||||
Warrant liability, issued | $ 475,300 | |||||
Issue of warrants expiring, November 6, 2025 [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of Warrants, issued | 2,757,252 | |||||
Warrant liability, issued | $ 508,200 | |||||
Issue of warrants expiring, June 10, 2024 [member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of Warrants, issued | 9,000,000 | |||||
Warrant liability, issued | $ 9,709,200 |
NOTE PAYABLE - Additional Information (Details) - Medtronic [Member] - USD ($) |
1 Months Ended | ||
---|---|---|---|
Jun. 03, 2020 |
Apr. 28, 2020 |
Jun. 30, 2020 |
|
Disclosure of detailed information about borrowings [line items] | |||
Proceeds from loan | $ 1,500,000 | ||
Principal amount | $ 1,500,000 | ||
Legal, transaction and intellectual property related expense incurred | $ 132,000 | ||
Interest rate on notes | 8.00% | ||
Accrued interest | $ 21,822 |
Share Capital - Additional Information (Detail) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 10, 2020
shares
|
May 06, 2020
USD ($)
$ / shares
shares
|
Jan. 03, 2020
USD ($)
$ / shares
shares
|
Dec. 23, 2019
USD ($)
shares
|
Mar. 21, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
$ / shares
shares
|
Mar. 27, 2020
USD ($)
$ / shares
shares
|
Jan. 28, 2020
shares
$ / shares
|
Aug. 29, 2019
USD ($)
$ / shares
shares
|
Jun. 30, 2020
USD ($)
$ / shares
shares
|
Jun. 30, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
shares
|
Jun. 30, 2020
USD ($)
shares
$ / shares
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
shares
$ / shares
|
Jun. 30, 2020
$ / shares
shares
|
Feb. 13, 2020
shares
|
Dec. 31, 2019
$ / shares
shares
|
Dec. 31, 2018
$ / shares
|
Dec. 31, 2018
$ / shares
|
|
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Shares issued | shares | 75,581,381 | 75,581,381 | 75,581,381 | 39,907,681 | 75,581,381 | 39,907,681 | ||||||||||||||
Offering price per share | $ / shares | $ 3.40 | |||||||||||||||||||
Cash commission | $ 83,744 | $ 451,068 | $ 195,869 | $ 720,497 | ||||||||||||||||
Amount allocated to common shares | $ 2,910,711 | 7,002,043 | ||||||||||||||||||
Warrant exercised | shares | 3,750,000 | 3,750,000 | 1,018,506 | 3,750,000 | 1,018,506 | 3,750,000 | 1,018,506 | |||||||||||||
Number of common shares available for issue under stock option plan | shares | 10,082,256 | 5,986,152 | ||||||||||||||||||
Stock based compensation | $ 206,087 | $ 740,051 | $ 434,663 | 991,408 | ||||||||||||||||
Contractual Life | 4 years 1 month 9 days | |||||||||||||||||||
Stock issuance costs | $ 487,788 | $ 1,498,498 | ||||||||||||||||||
Canadian Dollar [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Weighted average exercise price of options outstanding | $ / shares | $ 5.46 | $ 5.89 | $ 18.20 | |||||||||||||||||
Weighted average exercise price of options exercisable | $ / shares | $ 6.10 | |||||||||||||||||||
Options issued | shares | 25,765 | 35,719 | ||||||||||||||||||
Contractual Life | 3 years 9 months | |||||||||||||||||||
US Dollar [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Weighted average exercise price of options outstanding | $ / shares | $ 3.19 | $ 3.19 | $ 3.19 | $ 2.65 | $ 1.55 | |||||||||||||||
Weighted average exercise price of options exercisable | $ / shares | $ 3.02 | $ 3.02 | $ 3.02 | |||||||||||||||||
Options issued | shares | 843,693 | |||||||||||||||||||
Contractual Life | 5 years 1 month 20 days | |||||||||||||||||||
Director [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Options issued | shares | 25,765 | |||||||||||||||||||
Exercise prices/option | $ / shares | $ 0.657 | |||||||||||||||||||
Contractual Life | 7 years | |||||||||||||||||||
Warrants expiring between April 10, 2020 and March 27, 2025 [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Broker Warrants issued and outstanding | shares | 3,265,496 | 3,265,496 | 3,265,496 | 1,219,276 | 3,265,496 | 1,219,276 | ||||||||||||||
After Amendment [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Percentage of common shares reserved for issuance | 15.00% | |||||||||||||||||||
Aspire Agreement [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Gross proceeds from offerings | $ 3,000,000 | |||||||||||||||||||
Cash commission | $ 417,113 | |||||||||||||||||||
Over Allotment Option 1 [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Warrant exercised | shares | 1,018,506 | |||||||||||||||||||
Proceeds from warrant exercised | $ 3,259,219 | |||||||||||||||||||
Amount reclassed from warrant liability to common stock | $ 3,742,824 | |||||||||||||||||||
H.C.Wainwright and Co. LLC [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Sale of offering units | shares | 6,500,000 | 5,514,504 | 7,000,000 | 11,500,000 | ||||||||||||||||
Offering price per share | $ / shares | $ 0.36268 | $ 0.17 | $ 1.00 | |||||||||||||||||
Gross proceeds from offerings | $ 2,000,000 | $ 1,190,000 | $ 18,000,000 | |||||||||||||||||
Cash commission | $ 862,294 | |||||||||||||||||||
Net proceeds from offering | $ 1,575,000 | $ 16,500,000 | ||||||||||||||||||
Number of Common Stock Equivalents converted during period | shares | 8,000,000 | |||||||||||||||||||
Total proceeds from conversion of Common Stock Equivalents | $ 800 | |||||||||||||||||||
Exercise price per share | $ / shares | $ 0.3002 | $ 0.19 | ||||||||||||||||||
Fair value of warrants | $ 475,300 | |||||||||||||||||||
Amount allocated to common shares | $ 714,700 | |||||||||||||||||||
Warrants to purchase of common stock | shares | 2,757,252 | 3,500,000 | 9,000,000 | |||||||||||||||||
Contractual Life | 5 years 6 months | 4 years | ||||||||||||||||||
Conversion price of warrant | $ / shares | $ 1.00 | |||||||||||||||||||
Conversion price of common share | $ / shares | $ 0.0001 | |||||||||||||||||||
H.C.Wainwright and Co. LLC [Member] | Over Allotment Option 1 [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Cash commission | $ 140,000 | $ 83,300 | $ 1,260,000 | |||||||||||||||||
Warrants expiration period | Nov. 06, 2025 | Mar. 27, 2025 | Jun. 10, 2024 | |||||||||||||||||
Broker warrants to purchase common stock | shares | 386,015 | 490,000 | 1,260,000 | |||||||||||||||||
Common stock price per share | $ / shares | $ 0.45335 | $ 0.2125 | $ 1.25 | |||||||||||||||||
Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Shares issued | shares | 973,000 | 7,784,444 | 1,777,325 | 7,784,444 | 7,784,444 | 7,784,444 | 4,408,048 | |||||||||||||
Offering price per share | $ / shares | $ 1.6879 | |||||||||||||||||||
Gross proceeds from offerings | $ 3,000,000 | |||||||||||||||||||
Capital Issued Commitments | $ 35,000,000 | $ 35,000,000 | ||||||||||||||||||
Percentage Of Shares Outstanding | 5.30% | |||||||||||||||||||
Common stock shares issued value | 423,440 | $ 5,304,531 | ||||||||||||||||||
Stock issuance costs | $ 35,122 | |||||||||||||||||||
Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | Additional Commitment [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Shares issued | shares | 639,837 | |||||||||||||||||||
Percentage Of Shares Outstanding | 1.90% | |||||||||||||||||||
Cambridge Design Partnership Ltd [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Shares issued | shares | 501,148 | |||||||||||||||||||
Offering price per share | $ / shares | $ 0.50 | |||||||||||||||||||
Common stock shares issued value | $ 250,574 | |||||||||||||||||||
Northland Securities Inc [Member] | Aspire Agreement [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Cash commission | $ 160,000 | |||||||||||||||||||
Bloom Burton Securities Inc [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Sale of offering units | shares | 8,455,882 | |||||||||||||||||||
Offering price per share | $ / shares | $ 3.40 | |||||||||||||||||||
Gross proceeds from offerings | $ 28,750,000 | |||||||||||||||||||
Cash commission | 2,012,500 | |||||||||||||||||||
Net proceeds from offering | $ 25,426,744 | |||||||||||||||||||
Exercise price per share | $ / shares | $ 4.00 | |||||||||||||||||||
Fair value of warrants | $ 15,897,059 | |||||||||||||||||||
Amount allocated to common shares | $ 12,852,941 | |||||||||||||||||||
Warrants expiration period | Mar. 21, 2024 | |||||||||||||||||||
Bloom Burton Securities Inc [Member] | Over Allotment Option 1 [Member] | ||||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||||
Fair value of warrants | $ 864,190 | |||||||||||||||||||
Warrants expiration period | Mar. 21, 2021 | |||||||||||||||||||
Broker warrants to purchase common stock | shares | 591,911 | |||||||||||||||||||
Common stock price per share | $ / shares | $ 3.40 |
Share Capital - Disclosure Of Shares Sold Pursuant To Share Purchase Agreement (Details) - USD ($) |
6 Months Ended | ||||
---|---|---|---|---|---|
Dec. 23, 2019 |
Jun. 30, 2020 |
Feb. 13, 2020 |
Dec. 31, 2019 |
Aug. 29, 2019 |
|
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 75,581,381 | 39,907,681 | |||
Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 4,408,048 | ||||
Value | $ 2,071,930 | ||||
Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 973,000 | 7,784,444 | 4,408,048 | 1,777,325 | |
Value | $ 423,440 | $ 5,304,531 | |||
January 3, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 500,000 | ||||
Value | $ 219,600 | ||||
January 6, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 500,000 | ||||
Value | $ 229,300 | ||||
January 8, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 400,000 | ||||
Value | $ 195,160 | ||||
January 10, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 500,000 | ||||
Value | $ 247,550 | ||||
January 17, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 600,000 | ||||
Value | $ 303,000 | ||||
January 23, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 600,000 | ||||
Value | $ 295,320 | ||||
February 6, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 600,000 | ||||
Value | $ 282,000 | ||||
February 13, 2020 [Member] | Aspire Capital Fund LLC [Member] | Second Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 708,048 | ||||
Value | $ 300,000 | ||||
August 30, 2019 [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 2,417,162 | ||||
Value | $ 3,000,000 | ||||
November 8, 2019, One [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 100,000 | ||||
Value | $ 42,560 | ||||
November 8, 2019,Two [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 100,000 | ||||
Value | $ 42,560 | ||||
November 12, 2019, One [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 100,000 | ||||
Value | $ 42,970 | ||||
November 12, 2019,Two [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 100,000 | ||||
Value | $ 42,000 | ||||
November 13, 2019 [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 100,000 | ||||
Value | $ 42,970 | ||||
November 14, 2019 [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 300,000 | ||||
Value | $ 128,910 | ||||
November 15, 2019 [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 2,500,000 | ||||
Value | $ 1,074,250 | ||||
November 19, 2019 [Member] | Aspire Capital Fund LLC [Member] | Aspire Agreement [Member] | |||||
Disclosure Of Shares Sold Pursuant To Share Purchase Agreement [Line Items] | |||||
Common shares issued | 2,067,282 | ||||
Value | $ 888,311 |
Share Capital - Summary of Options Outstanding (Detail) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020
shares
$ / shares
|
Jun. 30, 2020
shares
$ / shares
|
Dec. 31, 2019
shares
$ / shares
|
Dec. 31, 2019
shares
$ / shares
|
|
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options, Balance Beginning | ||||
Number of Stock Options, Balance Ending | 1,254,951 | 1,254,951 | ||
Canadian Dollar [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options, Balance Beginning | 860,379 | 860,379 | 875,433 | 875,433 |
Number of Stock Options, Granted | 25,765 | 25,765 | 35,719 | 35,719 |
Number of Stock Options, Expired/Forfeited | (17,980) | (17,980) | (50,773) | (50,773) |
Number of Stock Options, Balance Ending | 868,164 | 868,164 | 860,379 | 860,379 |
Weighted-average Exercise Price, Balance Beginning | $ / shares | $ 5.89 | $ 18.20 | ||
Weighted-average Exercise Price, Granted | $ / shares | 0.66 | 4.54 | ||
Weighted-average Exercise Price, Expired/Forfeited | $ / shares | 24.55 | 31.79 | ||
Weighted-average Exercise Price, Balance Ending | $ / shares | $ 5.46 | $ 5.89 | ||
US Dollar [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of Stock Options, Balance Beginning | 854,042 | 854,042 | 50,349 | 50,349 |
Number of Stock Options, Granted | 843,693 | 843,693 | ||
Number of Stock Options, Expired/Forfeited | (467,255) | (467,255) | (40,000) | (40,000) |
Number of Stock Options, Balance Ending | 386,787 | 386,787 | 854,042 | 854,042 |
Weighted-average Exercise Price, Balance Beginning | $ / shares | $ 2.65 | $ 1.55 | ||
Weighted-average Exercise Price, Granted | $ / shares | 2.72 | |||
Weighted-average Exercise Price, Expired/Forfeited | $ / shares | 2.20 | 3.72 | ||
Weighted-average Exercise Price, Balance Ending | $ / shares | $ 3.19 | $ 2.65 |
Share Capital - Summary of Weighted-Average Remaining Contractual Life and Weighted-Average Exercise Price Options Outstanding and Options Exercisable on Exercise Prices (Detail) |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2020
shares
$ / shares
|
Jun. 30, 2020
shares
$ / shares
|
Dec. 31, 2019
shares
|
Dec. 31, 2018
shares
|
|
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options Outstanding, Number Outstanding | 1,254,951 | 1,254,951 | ||
Weighted average remaining contractual life of outstanding share options | 4 years 1 month 9 days | |||
Options Outstanding, Options Exercisable | 760,983 | 760,983 | ||
Canadian Dollar [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options Outstanding, Number Outstanding | 868,164 | 868,164 | 860,379 | 875,433 |
Weighted average remaining contractual life of outstanding share options | 3 years 9 months | |||
Options Outstanding, Options Exercisable | 511,196 | 511,196 | ||
Canadian Dollar [Member] | $0.66 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 0.66 | |||
Options Outstanding, Number Outstanding | 25,765 | 25,765 | ||
Weighted average remaining contractual life of outstanding share options | 6 years 6 months 29 days | |||
Options Outstanding, Options Exercisable | 25,765 | 25,765 | ||
Canadian Dollar [Member] | $3.28 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 3.28 | |||
Options Outstanding, Number Outstanding | 31,498 | 31,498 | ||
Weighted average remaining contractual life of outstanding share options | 5 years 2 months 1 day | |||
Options Outstanding, Options Exercisable | 31,498 | 31,498 | ||
Canadian Dollar [Member] | $4.50 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 4.50 | |||
Options Outstanding, Number Outstanding | 18,936 | 18,936 | ||
Weighted average remaining contractual life of outstanding share options | 2 years 9 months 11 days | |||
Options Outstanding, Options Exercisable | 18,936 | 18,936 | ||
Canadian Dollar [Member] | $4.54 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 4.54 | |||
Options Outstanding, Number Outstanding | 735,998 | 735,998 | ||
Weighted average remaining contractual life of outstanding share options | 3 years 9 months 7 days | |||
Options Outstanding, Options Exercisable | 379,030 | 379,030 | ||
Canadian Dollar [Member] | $4.80 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 4.80 | |||
Options Outstanding, Number Outstanding | 3,040 | 3,040 | ||
Weighted average remaining contractual life of outstanding share options | 2 months 16 days | |||
Options Outstanding, Options Exercisable | 3,040 | 3,040 | ||
Canadian Dollar [Member] | $9.00 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 9.00 | |||
Options Outstanding, Number Outstanding | 11,481 | 11,481 | ||
Weighted average remaining contractual life of outstanding share options | 5 years 7 days | |||
Options Outstanding, Options Exercisable | 11,481 | 11,481 | ||
Canadian Dollar [Member] | $9.60 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 9.60 | |||
Options Outstanding, Number Outstanding | 1,105 | 1,105 | ||
Weighted average remaining contractual life of outstanding share options | 3 months 8 days | |||
Options Outstanding, Options Exercisable | 1,105 | 1,105 | ||
Canadian Dollar [Member] | $11.70 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 11.70 | |||
Options Outstanding, Number Outstanding | 6,667 | 6,667 | ||
Weighted average remaining contractual life of outstanding share options | 5 months 9 days | |||
Options Outstanding, Options Exercisable | 6,667 | 6,667 | ||
Canadian Dollar [Member] | $12.00 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 12.00 | |||
Options Outstanding, Number Outstanding | 1,948 | 1,948 | ||
Weighted average remaining contractual life of outstanding share options | 5 months 5 days | |||
Options Outstanding, Options Exercisable | 1,948 | 1,948 | ||
Canadian Dollar [Member] | $30.00 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 30.00 | |||
Options Outstanding, Number Outstanding | 28,260 | 28,260 | ||
Weighted average remaining contractual life of outstanding share options | 1 year 1 month 24 days | |||
Options Outstanding, Options Exercisable | 28,260 | 28,260 | ||
Canadian Dollar [Member] | $30.60 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 30.60 | |||
Options Outstanding, Number Outstanding | 2,096 | 2,096 | ||
Weighted average remaining contractual life of outstanding share options | 5 months 23 days | |||
Options Outstanding, Options Exercisable | 2,096 | 2,096 | ||
Canadian Dollar [Member] | $32.40 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 32.40 | |||
Options Outstanding, Number Outstanding | 810 | 810 | ||
Weighted average remaining contractual life of outstanding share options | 6 months 29 days | |||
Options Outstanding, Options Exercisable | 810 | 810 | ||
Canadian Dollar [Member] | $45.30 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 45.30 | |||
Options Outstanding, Number Outstanding | 560 | 560 | ||
Weighted average remaining contractual life of outstanding share options | 1 month 13 days | |||
Options Outstanding, Options Exercisable | 560 | 560 | ||
US Dollar [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Options Outstanding, Number Outstanding | 386,787 | 386,787 | 854,042 | 50,349 |
Weighted average remaining contractual life of outstanding share options | 5 years 1 month 20 days | |||
Options Outstanding, Options Exercisable | 249,787 | 249,787 | ||
US Dollar [Member] | $1.55 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 1.55 | |||
Options Outstanding, Number Outstanding | 50,349 | 50,349 | ||
Weighted average remaining contractual life of outstanding share options | 1 year 5 months 20 days | |||
Options Outstanding, Options Exercisable | 50,349 | 50,349 | ||
US Dollar [Member] | $2.20 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 2.20 | |||
Options Outstanding, Number Outstanding | 2,165 | 2,165 | ||
Weighted average remaining contractual life of outstanding share options | 2 years 18 days | |||
Options Outstanding, Options Exercisable | 2,165 | 2,165 | ||
US Dollar [Member] | $3.40 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 3.40 | |||
Options Outstanding, Number Outstanding | 294,273 | 294,273 | ||
Weighted average remaining contractual life of outstanding share options | 5 years 10 months 14 days | |||
Options Outstanding, Options Exercisable | 197,273 | 197,273 | ||
US Dollar [Member] | $3.72 [Member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Exercise prices/option | $ / shares | $ 3.72 | |||
Options Outstanding, Number Outstanding | 40,000 | 40,000 | ||
Weighted average remaining contractual life of outstanding share options | 2 years 2 months 8 days | |||
Options Outstanding, Options Exercisable |
Share Capital - Summary of Inputs Used in Measurement of Fair Values at Grant Date of Share Based Option Plan (Detail) |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020
CAD ($)
yr
$ / shares
|
Dec. 31, 2019
USD ($)
yr
$ / shares
|
|
Canadian Dollar [Member] | ||
Disclosure of fair value measurement of equity [line items] | ||
Fair value calculated | $ 0.43 | |
Share price at grant | 0.62 | |
Exercise price | $ 0.66 | |
Expected option life | yr | 3.5 | |
Risk free interest rate (based on government bonds) | 1.41% | |
Expected volatility | 109.00% | |
Expected dividends | $ | ||
US Dollar [Member] | ||
Disclosure of fair value measurement of equity [line items] | ||
Fair value calculated | $ 1.76 | |
Share price at grant | 2.84 | |
Exercise price | $ 3.40 | |
Expected option life | yr | 3.5 | |
Risk free interest rate (based on government bonds) | 1.61% | |
Expected volatility | 98.43% | |
Expected dividends | $ |
Commitments - Additional Information (Detail) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Commitments [abstract] | ||
Purchase orders remain outstanding | $ 4,132,120 | $ 1,327,294 |
Deposits | $ 481,400 | $ 481,400 |
Related Party Transactions - Additional Information (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Key management personnel of entity or parent [member] | ||||
Disclosure of transactions between related parties [line items] | ||||
Compensation to the Executive Officers | $ 218,596 | $ 446,911 | $ 453,531 | $ 961,163 |
Related Party Transactions - Summary of Common Shares Outstanding and Percentage Control of the Company (Detail) - shares |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 75,581,381 | 39,907,681 |
Percentage of ownership | 100.00% | 100.00% |
Key management personnel of entity or parent [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 70,168 | 60,168 |
Percentage of ownership | 0.09% | 0.15% |
Key management personnel of entity or parent [member] | John Barker [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 42,714 | 32,714 |
Percentage of ownership | 0.06% | 0.08% |
Key management personnel of entity or parent [member] | Stephen Randall [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 22,993 | 22,993 |
Percentage of ownership | 0.03% | 0.06% |
Key management personnel of entity or parent [member] | David McNally [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 4,167 | 4,167 |
Percentage of ownership | 0.01% | 0.01% |
Key management personnel of entity or parent [member] | John Schellhorn [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of Shares | 294 | 294 |
Percentage of ownership | 0.00% | 0.00% |
Capital Management - Additional Information (Details) |
6 Months Ended |
---|---|
Jun. 30, 2020
$ / shares
| |
Capital Management | |
Bid price | $ 1.00 |
Subsequent events - Additional Information (Details) |
1 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 31, 2020
USD ($)
shares
|
Jul. 30, 2020
shares
$ / shares
|
Jan. 28, 2020
shares
$ / shares
|
Jun. 30, 2020
shares
|
Dec. 31, 2019
shares
|
Mar. 31, 2019
shares
|
|
Statement Line Items [Line Items] | ||||||
Common shares issued upon exercise of warrants | 3,750,000 | 1,018,506 | 1,018,506 | |||
Contractual Life | 4 years 1 month 9 days | |||||
Director [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Options issued | 25,765 | |||||
Exercise prices/option | $ / shares | $ 0.657 | |||||
Contractual Life | 7 years | |||||
Events After Reporting Period [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Common shares issued upon exercise of warrants | 2,442,939 | |||||
Proceeds from warrant exercised | $ | $ 733,370 | |||||
Common share issued upon conversion of common shares | 3,500,000 | |||||
Proceeds from conversion of shares | $ | $ 350 | |||||
Events After Reporting Period [Member] | Director [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Options issued | 22,425 | |||||
Exercise prices/option | $ / shares | $ 1.266 | |||||
Contractual Life | 7 years | |||||
Events After Reporting Period [Member] | Employees [Member] | ||||||
Statement Line Items [Line Items] | ||||||
Options issued | 1,350,000 | |||||
Exercise prices/option | $ / shares | $ 0.962 | |||||
Option vesting annually | 25.00% | |||||
Contractual Life | 4 years |
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