Concentrations of Market Risk

12 Months Ended

Dec. 31, 2018

Risks And Uncertainties [Abstract]

Concentration of market risk

11. Concentrations of market risk:

(a) Foreign currency risk:

At December 31, 2018, the Company had U.S. dollar denominated cash and cash equivalents and marketable securities of $110,771 (2017 - $28,028) and Canadian denominated cash and cash equivalents and marketable securities of CAD$11,644 (2017 - CAD$19,619).

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 a portion of cash and cash equivalents and marketable securities are held in Canadian dollars. The Company does not currently hedge its exposure and thus assumes the risk of future gains or losses on the amounts of Canadian dollars held.

(b) Interest Rate Risk:

At December 31, 2018, the Company had cash and cash equivalents and marketable securities of $119,306. The Company’s interest rate risk is primarily attributable to its cash and cash equivalents and marketable securities. The Company believes that it does not have any material exposure to changes in the fair value of these assets as a result of changes in interest rates due to the short term nature of cash and cash equivalents and marketable securities. The Company does not enter into investments for trading or speculative purposes and has not used any derivative financial instruments to manage interest rate exposure.

The Company had a total outstanding loan balance of $15,500 as of December 31, 2018, of which $nil was due within 12 months. The interest rate on borrowings under the Amended and Restated Loan Agreement with the Bank accrues at a floating per annum rate of 0.5% above the prime rate.