Foreign Exchange Gain (Loss)

12 Months Ended

Dec. 31, 2015

Foreign Currency [Abstract]

Foreign Currency Risk

8. Foreign currency risk:

At December 31, 2015, the Company had U.S. dollar denominated cash and cash equivalents of $17,836 (December 31, 2014 - $46,531) and Canadian denominated cash and cash equivalents and marketable securities of CAD$56,491 (December 31, 2014 - CAD$43,516).

The Company faces foreign currency exchange rate risk in part, as a result of entering into transactions denominated in currencies other than U.S. dollars, particularly those denominated in Canadian dollars. The Company also holds non-U.S. dollar denominated cash and cash equivalents, marketable securities, accounts receivable and accounts payable, which are denominated in Canadian dollars.

Changes in foreign currency exchange rates can create significant foreign exchange gains or losses to the Company. The Company’s current foreign currency risk is with the Canadian dollar, as a majority of non-U.S. dollar denominated expenses are denominated in Canadian dollars and the majority of cash and cash equivalents and marketable securities are held in Canadian dollars. To limit the Company’s exposure to volatility in currency markets, management estimates anticipated expenses that will be denominated in Canadian and U.S. dollars and then purchases a corresponding amount of Canadian or U.S. dollars at the current spot rate. Once these estimated expense amounts are acquired, the Company does not hedge its exposure and thus assumes the risk of future gains or losses on the amounts of Canadian dollars held.