Annual report pursuant to Section 13 and 15(d)

CHANGE IN ACCOUNTING POLICY

v3.8.0.1
CHANGE IN ACCOUNTING POLICY
12 Months Ended
Mar. 31, 2018
Disclosure Text Block [Abstract]  
Accounting Changes and Error Corrections [Text Block]
2.
CHANGE IN ACCOUNTING POLICY
 
The FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260) Distinguishing Liabilities From Equity (Topic 480) Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments With Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception, allows a financial instrument with a down-round feature to no longer automatically be classified as a liability solely based on the existence of the down-round provision. The update also means the instrument would not have to be accounted for as a derivative and be subject to an updated fair value measurement each reporting period.
 
On consideration of the above factors, the Company elected to early adopt ASU 2017-11 on July 1, 2017, the ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other organizations, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020.
 
The early adoption allows the Company to reduce the cost and complexity of updating the fair value measurement each reporting period and eliminate the unnecessary volatility in reported earnings created by the revaluation when the Company’s shares’ value changes.
 
The Company presented the change in accounting policy through the retrospective application of the new accounting principle to all prior periods, as described in ASU No. 250-10-45-5, Accounting Changes and Error Corrections. The following financial statement line items for the year ended March 31, 2017 were affected by the change in accounting principle.
 
Income Statement
 
 
 
As originally
 
As of
March 31, 2017
 
Effect of
 
 
 
reported
 
As adjusted
 
change
 
Sales
 
$
571,945
 
$
571,945
 
$
-
 
Cost of Sales
 
 
388,756
 
 
388,756
 
 
-
 
Total operating expenses
 
 
8,829,481
 
 
8,829,481
 
 
-
 
Total other expenses
 
 
(4,709,718)
 
 
(576,890)
 
 
(4,132,828)
 
Net income (loss) and comprehensive loss for the Period
 
 
(3,936,574)
 
 
(8,069,402)
 
 
(4,132,828)
 
Basic loss per share
 
 
(0.04)
 
 
(0.09)
 
 
(0.05)
 
Diluted loss per share
 
 
(0.04)
 
 
(0.09)
 
 
(0.05)
 
 
Balance sheet
 
As a result of the accounting policy change, the Company’s deficit as of April 1, 2017 increased from ($15,588,554), as originally reported under ASU No. 2016-01, to ($21,076,464) using ASU No. 2017-11.
 
Balance Sheet
 
As originally
reported
 
As at
March 31, 2017
As adjusted
 
Effect of
change
 
Current assets
 
$
1,402,580
 
$
1,402,580
 
$
-
 
Capital assets
 
 
227,421
 
 
227,421
 
 
-
 
Intangible assets
 
 
27,338,899
 
 
27,338,899
 
 
-
 
Total assets
 
$
28,968,900
 
$
28,968,900
 
$
-
 
Warrant derivative liability
 
 
959,600
 
 
-
 
 
(959,600)
 
Other current liabilities
 
 
4,818,205
 
 
4,818,250
 
 
45
 
Total liabilities
 
$
5,777,805
 
$
4,818,250
 
$
(959,555)
 
Common stock
 
 
96,794
 
 
96,794
 
 
-
 
Additional paid in capital
 
 
38,640,706
 
 
45,088,171
 
 
6,447,465
 
Deficit
 
 
(15,588,554)
 
 
(21,076,464)
 
 
(5,487,910)
 
Accumulated other comprehensive income
 
 
42,149
 
 
42,149
 
 
-
 
Total shareholders’ equity
 
$
23,191,095
 
$
24,150,650
 
$
959,555
 
Total liabilities and shareholders’ equity
 
$
28,968,900
 
$
28,968,900
 
$
-
 
 
Statement of cash flows
 
 
 
As originally
reported
 
As at
March 31, 2017
As adjusted
 
Effect
of change
 
Net income (loss) for year
 
$
(3,936,574)
 
$
(8,069,402)
 
$
(4,132,828)
 
Adjustment for items not affecting cash and changes in non-cash working capital items
 
 
(3,055,739)
 
 
1,077,089
 
 
4,132,828
 
Net cash (used in) operating activities
 
 
(6,992,313)
 
 
(6,992,313)
 
 
-
 
Net cash (used in) investing activities
 
 
(170,790)
 
 
(170,790)
 
 
-
 
Net cash provided by financing activities
 
 
2,324,996
 
 
2,324,996
 
 
-
 
Net (decrease) in cash and cash equivalents for the year
 
 
(4,838,107)
 
 
(4,838,107)
 
 
-
 
Cash and cash equivalents, beginning of year
 
 
5,381,757
 
 
5,381,757
 
 
-
 
Cash and cash equivalents, end of year
 
$
543,650
 
$
543,650
 
$
-