2.4.0.8000080 - Disclosure - 4. Summary of Significant Accounting Policiestruefalsefalse1false falsefalseD130101_130630http://www.sec.gov/CIK0001024048duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DisclosureTextBlockAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Notes2false 2us-gaap_SignificantAccountingPoliciesTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse004.        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   The accounting policies of the Company are in accordance with accounting principles generally accepted in the United States. Presented below are those policies considered particularly significant:     Basis of Consolidation and Presentation   The accompanying interim condensed consolidated financial statements include the accounts of the Company, and its wholly-owned subsidiary Panacea (a Delaware incorporated Company) and Panacea Global Inc. (a Canadian incorporated Company).  All inter-company transactions and balances have been eliminated upon consolidation. The interim condensed consolidated financial statements of the Company included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in conjunction with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These interim condensed consolidated financial statements should be read in conjunction with the Companys 2012 year end annual consolidated audited financial statements and the notes thereto included in the Companys annual report on Form 10-K.   The accompanying interim condensed consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted.       Translation of Foreign Currency Financial Statements and Foreign Currency Transactions   The functional currency of the Company is Canadian dollars. The functional currency of the Companys subsidiaries is United States dollars.  The interim condensed financial statements of the Company have been translated into United States dollars by translating balance sheet accounts at year end and period end exchange rates except for non-current assets which are translated at historical exchange rates, and statement of operations accounts at average exchange rates for the periods. Foreign currency translation gains and losses are reflected in the equity section of the Companys consolidated balance sheet in Accumulated Other Comprehensive Income (Loss). The balance of the foreign currency translation adjustment, included in Accumulated Other Comprehensive Loss, was $6,249 for the three months ended June 30, 2013 and $20,653 for the six months ended June 30, 2013. For the period from inception (February 5, 2010) through June 30, 2013, $109,764 of foreign currency translation adjustment was included in Accumulated Other Comprehensive Income (Loss). Earnings or Loss Per Share   The Company accounts for earnings per share pursuant to ASC 260-10-05, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common stock outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each period.     <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="5%" valign="top" style='width:5.34%;padding:0'></td> <td width="94%" valign="top" style='width:94.66%;padding:0'></td> </tr> </table> Financial Instruments   In accordance with ASC 825-10-50, Defining Fair Value Measurement, the estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair value. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. As of June 30, 2013, the carrying value of accounts payable and accrued liabilities, due to related parties and license fee payable approximate their fair value because of the short-term maturity of these instruments.  The fair value of the investment is not readily determinable.   In accordance with ASC 820-10, Defining Fair Value Measurement, the Company adopted the standard which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  Income Taxes   The Company accounts for income taxes pursuant to ASC 740-10, Accounting for Income Taxes. Deferred tax assets and liabilities are recorded for differences between the financial statements and tax basis of the assets and liabilities as well as loss carry forward that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. Impairment of Long-lived Assets   In accordance with ASC 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The Company evaluates whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value of asset less cost to sell. Use of Estimates   The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known. The accounting estimates that require managements most significant judgments are the valuation of the intangible asset and measurement of accrued liabilities.       <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="5%" valign="top" style='width:5.34%;padding:0'></td> <td width="94%" valign="top" style='width:94.66%;padding:0'></td> </tr> </table> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;font-weight:bold;font-style:italic;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>Property and Equipment <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>  <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>Property and equipment are initially recorded at cost.  Depreciation is provided using the declining balance method at rates intended to amortize the cost of assets over their estimated useful lives. <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>  <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr align="left"> <td width="355" valign="top" style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt'>  </td> <td width="198" valign="top" style='width:148.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>Method </td> <td width="85" valign="top" style='width:63.9pt;padding:0in 5.4pt 0in 5.4pt'> Rate </td> </tr> <tr align="left"> <td width="355" valign="top" style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt'>Computer equipment </td> <td width="198" valign="top" style='width:148.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>Declining balance </td> <td width="85" valign="top" style='width:63.9pt;padding:0in 5.4pt 0in 5.4pt'> 30% </td> </tr> <tr align="left"> <td width="355" valign="top" style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt'>Furniture and equipment </td> <td width="198" valign="top" style='width:148.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>Declining balance </td> <td width="85" valign="top" style='width:63.9pt;padding:0in 5.4pt 0in 5.4pt'> 20% </td> </tr> <tr align="left"> <td width="355" valign="top" style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt'>Lab equipment </td> <td width="198" valign="top" style='width:148.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>Declining balance </td> <td width="85" valign="top" style='width:63.9pt;padding:0in 5.4pt 0in 5.4pt'> 30% </td> </tr> <tr align="left"> <td width="355" valign="top" style='width:3.7in;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt'>Leasehold improvements </td> <td width="198" valign="top" style='width:148.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right'>Declining balance </td> <td width="85" valign="top" style='width:63.9pt;padding:0in 5.4pt 0in 5.4pt'> 20% </td> </tr> </table> <p style='margin-top:.1in;margin-right:.2in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-autospace:none;margin-top:0in;margin-right:14.45pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>  In the year of acquisition, depreciation is taken as assets are available for use. Equity Compensation   The Company adopted ASC 718, Share-Based Payment, which establishes standards for transactions in which an entity exchanges its equity instruments for goods and services. This standard focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions, including issuance of stock options to employees. The Company measures stock-based compensation cost at grant date, based on the estimated fair value of the award, and recognizes the cost as expense on a straight-line basis (net of estimated forfeitures) over the employee requisite service period. The Company estimates the fair value of stock options using a Black-Scholes valuation model. Investment in Equity Instruments   The Company has accounted for its investment in equity and debt securities using the equity method of accounting based on the guidelines established in FASB ASC 323. In applying the guidance of FASB ASC 323, the Company recognizes the investment in stock of an investee as an asset. The asset is recorded initially at cost in accordance with the guidance in FASB ASC 805-50-30. Subsequent to the initial recording the Company will recognize its share of the earnings or losses of an investee in the periods for which they are reported by the investee in its financial statements. The Company adjusts the carrying value of the investment for its share of the earnings or losses of the investee after the date of investment and shall report the recognized earnings or losses in the statement of operations. Recent Accounting Pronouncements   Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASBs Accounting Standards Codification.   The Company has assessed the applicability and impact of all ASUS and they have been determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.  falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18726-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18861-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18743-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18854-107790 false04. 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