XML 35 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Basis of Presentation, Measurement and Consolidation
12 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Basis of Presentation, Measurement and Consolidation

2. BASIS OF PRESENTATION, MEASUREMENT AND CONSOLIDATION

 

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and are expressed in United States dollars (“USD”).

 

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Significant intercompany accounts and transactions have been eliminated.

 

Certain prior year amounts have been reclassified to conform to the current-year’s presentation.

 

Liquidity and Basis of Presentation

 

The Company is an emerging growth entity that is in the early stages of commercializing its first product and is concurrently in development mode, operating a research and development program in order to develop, obtain regulatory approval for, and commercialize other proposed products. The Company has incurred recurring losses from operations, and as at March 31, 2020, has an accumulated deficit of 46,364,364 and a working capital deficiency of $2,144,192. The Company launched its first commercial sales program as part of a limited market release, during the year ended March 31, 2019, using an experienced professional in-house sales team. A full market release ensued during the year ended March 31, 2020. Management anticipates the Company will attain profitable status and improve its liquidity through continued business development and after additional equity or debt capitalization of the Company. The Company has developed and continues to pursue sources of funding that management believes if successful would be sufficient to support the Company’s operating plan and alleviate any substantial doubt as to its ability to meet its obligations at least for a period of one year from the date of these consolidated financial statements. Pursuant to raising a net $867,699 in promissory notes and other short term loan funding in its prior fiscal year, the Company raised an additional $3,094,820  in promissory notes and short term loans during the year ended March 31, 2020. In December 2019 and January 2020, the Company issued 7,830 Series A preferred shares; 6,000 of these were issued for cash proceeds of $6,000,000 and 1,830 of these were issued on conversion of $1,830,000 of promissory notes that had previously been issued for cash proceeds in October 2019 (see Note 5, Note 6 and Note 7). During the year ended March 31, 2020, the Company also issued common shares under a registered offering outstanding, which raised proceeds of $28,565 through the issuance of 47,585 common shares. The Company also conserves its cash resources by paying certain consultants with common shares, where it would have otherwise been paid for their services using cash; during the fiscal year ended March 31, 2020, the Company issued a total of 1,089,255 common shares to various consultants and advisors, with a cumulative fair value of $744,121, recognized as general and administrative and research and development expenses, as applicable, in the statement of operations, with corresponding credit to common stock, shares to be issued, and additional paid-in-capital, respectively (see Note 7). The Company has also raised government funding provided for economic support during COVID-19, including $1.2 million raised subsequent to its fiscal 2020 year end (see Note 12 – Subsequent Events).

 

The Company’s operating plan is predicated on a variety of assumptions including, but not limited to, the level of product demand, cost estimates, its ability to continue to raise additional financing and the state of the general economic environment in which the Company operates. There can be no assurance that these assumptions will prove to be accurate in all material respects, or that the Company will be able to successfully execute its operating plan. In the absence of additional appropriate financing, the Company may have to modify its operating plan or slow down the pace of development and commercialization of its proposed products.