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Document and Entity Information
6 Months Ended
Jun. 30, 2013
May 15, 2013
Document and Entity Information [Abstract]
Entity Registrant Name DelMar Pharmaceuticals, Inc.
Entity Central Index Key 0001498382
Trading Symbol dmpi
Entity Current Reporting Status Yes
Entity Voluntary Filers No
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Entity Common Stock, Shares Outstanding 22,420,426
Document Type 10-Q
Document Period End Date Jun 30, 2013
Amendment Flag false
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q2
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Consolidated Condensed Interim Balance Sheets (Unaudited) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Current assets
Cash and cash equivalents $ 6,282,992 $ 17,782
Taxes and other receivables 16,894 45,499
Prepaid expenses 221,262 28,778
Deferred costs    90,771
Assets, total 6,521,148 182,830
Current liabilities
Accounts payable and accrued liabilities 431,227 677,615
Related party payables 236,462 447,777
Current liabilities, total 667,689 1,125,392
Loan payable to Valent 268,299 264,352
Stock option liability 311,257   
Derivative liability 12,986,827 121,000
Liabilities, total 14,234,072 1,510,744
Stockholders' Deficiency
Preferred stock Authorized 5,000,000 shares, $0.001 par value 1 share outstanding as of June 30, 2013(December 31, 2012 - nil)      
Common stock Authorized 200,000,000 shares, $0.001 par value Issued and outstanding 31,150,009 at June 30, 2013 (December 31, 2012 - 13,050,000) 31,150 13,050
Additional paid-in capital 7,585,810 2,326,885
Warrants 6,441,700 153,106
Deficit accumulated during the development stage (21,792,762) (3,842,133)
Accumulated other comprehensive income 21,178 21,178
Stockholders' equity, total (7,712,924) (1,327,914)
Liabilities and equity, total $ 6,521,148 $ 182,830
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Consolidated Condensed Interim Balance Sheets (Unaudited) (Parentheticals) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares outstanding 1   
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued (in shares) 31,150,009 13,050,000
Common stock, shares outstanding (in shares) 31,150,009 13,050,000
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Consolidated Condensed Interim Statement of Loss and Comprehensive Loss (Unaudited) (USD $)
3 Months Ended 6 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Expenses
Research and development $ 584,412 $ 733,160 $ 1,216,359 $ 987,534 $ 3,859,645
General and administrative 1,654,380 394,792 2,574,757 562,583 4,038,762
Operating expenses, total 2,238,792 1,127,952 3,791,116 1,550,117 7,898,407
Other loss (income)
Change in fair value of derivative liability 4,599,201 0 7,142,775 0 6,824,273
Issuance of shares to Valent for future royalty reduction       598,000    598,000
Derivative issue costs       2,713,220    2,737,962
Foreign exchange (25,179) 7,898 (28,933) (4,596) (29,785)
Interest expense 1,992 1,876 3,947 3,740 33,401
Interest income (1,180)    (1,180)    (1,180)
Nonoperating Income (Expense) 4,574,834 9,774 10,427,829 (856) 10,162,671
Net loss for the period 6,813,626 1,137,726 14,218,945 1,549,261 18,061,078
Basic and diluted loss per share $ (0.22) $ (0.08) $ (0.51) $ (0.12)   
Weighted average number of shares 30,974,569 14,321,470 27,727,845 13,442,510   
Comprehensive loss
Net loss 6,813,626 1,137,726 14,218,945 1,549,261 18,061,078
Recapitalization loss on reverse acquisition          3,731,684
Net Loss and Recapitalization Loss On Reverse Acquisition Total 6,813,626 1,137,726 14,218,945 1,549,261 21,792,762
Other comprehensive (loss) income
Translation to US dollar presentation currency    7,786    11,594 (21,178)
Comprehensive loss $ 6,813,626 $ 1,145,512 $ 14,218,945 $ 1,560,855 $ 21,771,584
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Statements of Changes in Stockholders' Equity (USD $)
Common stock
Additional paid-in capital
Accumulated other comprehensive income
Warrant
Deficit accumulated during the development stage
Total
Balance at Dec. 31, 2012 $ 13,050 $ 2,326,885 $ 21,178 $ 153,106 $ (3,842,133) $ (1,327,914)
Balance (in shares) at Dec. 31, 2012 13,050,000 [1],[2] 13,050,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Effect of the Reverse Acquisition (note 3) 3,250 1,686,754       (3,731,684) (2,041,680)
Effect of the Reverse Acquisition (note 3) (in shares) [1],[2] 3,250,007
Issuance of units at $0.80 per unit from January 25 to March 6, 2013, net of cash issue costs (note 7 (b)) 13,125 5,854,252          5,867,377
Issuance of units at $0.80 per unit from January 25 to March 6, 2013, net of cash issue costs (note 7 (b)) (in shares) [1],[2] 13,125,002
Issuance of placement agent warrants as issue costs for the $0.80 unit issuance (note 7(b))    (4,087,586)    6,288,594    2,201,008
Issuance of common shares to Valent for future royalty reduction (note 7 (c)) 1,150 596,850          598,000
Issuance of common shares to Valent for future royalty reduction (note 7 (c)) (in shares) [1],[2] 1,150,000
Shares issued for services (note 7(d)) 575 996,982          997,557
Shares issued for services (note 7(d)) (in shares) [1],[2] 575,000
Stock-based compensation (note 7)    211,673          211,673
Comprehensive loss for the period                  
Loss for the period             (14,218,945) (14,218,945)
Balance at Jun. 30, 2013 $ 31,150 $ 7,585,810 $ 21,178 $ 6,441,700 $ (21,792,762) $ (7,712,924)
Balance (in shares) at Jun. 30, 2013 31,150,009 [1],[2] 31,150,009
[1] The issued and outstanding common shares include 8,729,583 shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares (notes 3 and 7)
[2] Under the Reverse Acquisition, the authorized and issued share capital is that of the Company while the stated value is that of DelMar (BC) (note 3).
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Statements of Changes in Stockholders' Equity (Parentheticals)
6 Months Ended
Jun. 30, 2013
Number of shares issued and outstanding in exchange for transfer to Exchangeco 8,729,583
Placement agent
Issuance of units/warrants at net of cash issue costs 0.8
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Consolidated Condensed Interim Statement of Cash Flows (Unaudited) (USD $)
6 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Cash flows from operating activities
Loss for the period $ (14,218,945) $ (1,549,261) $ (18,061,078)
Items not affecting cash
Accrued interest 3,947 3,740 18,299
Change in fair value of derivative liability 7,142,775 0 6,824,273
Shares issued to Valent for future royalty reduction 598,000    598,000
Non-cash derivative issue costs 2,201,008    2,201,008
Units issued for services    90,072 275,284
Warrants issued for patents       89,432
Warrants issued for services    49,379 49,379
Share-based compensation 1,520,487 941,875 2,777,958
Prototype drug product       250,000
Net income (loss) after adjustments of non-cash items (2,752,728) (464,195) (4,977,445)
Changes in non-cash working capital
Taxes and other receivables 28,605 32,732 (16,894)
Prepaid expenses (192,484) (28,431) (221,262)
Accounts payable and accrued liabilities (246,388) (15,949) 658,145
Related party payables (211,315) 16,852 236,462
Changes in non-cash working capital total (621,582) 5,204 656,451
Net cash flows from operating activities (3,374,310) (458,991) (4,320,994)
Cash flows from financing activities
Net proceeds from the issuance of units 9,639,520 671,570 10,501,916
Net proceeds from the issuance of common shares       102,070
Net cash flows from financing activities 9,639,520 671,570 10,603,986
Increase in cash and cash equivalents 6,265,210 212,579 6,282,992
Cash and cash equivalents - beginning of period 17,782 15,018
Cash and cash equivalents - end of period 6,282,992 227,597 6,282,992
Supplementary information
Issuance of shares for the settlement of accounts payable (notes 4 and 5)    253,050 253,050
Issuance of units for the settlement of accounts payable       23,785
Non-cash share issuance costs (note 7) 6,288,594    6,302,889
Settlement of accounts payable with a loan payable (note 4)       250,000
Deferred costs $ 90,771      
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Nature of operations and liquidity risk
6 Months Ended
Jun. 30, 2013
Going Concern and Nature Of Operations [Abstract]
Nature of operations and liquidity risk
1  
Nature of operations and liquidity risk
 
Nature of operations
 
DelMar Pharmaceuticals, Inc. (the “Company”) is a Nevada corporation formed on June 24, 2009 under the name Berry Only Inc. (“Berry”). Prior to the Reverse Acquisition (note 3), Berry did not have any significant assets or operations. DelMar Pharmaceuticals, Inc. is the parent company of Del Mar Pharmaceuticals (BC) Ltd. (“DelMar (BC)”), a British Columbia, Canada corporation incorporated on April 6, 2010, which is a development stage company with a focus on the development of drugs for the treatment of cancer. It is also the parent company to 0959454 B.C. Ltd., a British Columbia corporation (“Callco”), and 0959456 B.C. Ltd., a British Columbia corporation (“Exchangeco”). Callco and Exchangeco were formed to facilitate the Reverse Acquisition (note 3).
 
The Company acquired (either directly or indirectly (through Exchangeco)) all of the issued and outstanding shares of DelMar (BC) on January 25, 2013 (note 3). As a result of the shareholders of DelMar (BC) having a controlling interest in the Company subsequent to the Reverse Acquisition, for accounting purposes the transaction is a capital transaction with DelMar (BC) being the accounting acquirer even though the legal acquirer is Berry. Therefore, the historic financial statements of DelMar (BC) are presented as the comparative balances for the periods prior to the Reverse Acquisition.
 
References to the Company refer to the Company and its wholly-owned subsidiaries, DelMar (BC), Callco and Exchangeco. Prior to the Reverse Acquisition references to Berry relate to the Company prior to the Reverse Acquisition.
 
The Company is a development stage company focused on the discovery and development of new medicines with the potential to treat cancer patients who have failed modern targeted or biologic therapy. The Company has initiated a clinical trial with its lead drug candidate VAL-083 for the treatment of refractory glioblastoma multiforme (“GBM”). The Phase I/II study is an open-label, single arm dose-escalation study designed to evaluate the safety, tolerability, pharmacokinetics and anti-tumor activity of VAL-083 in patients with histologically confirmed initial diagnosis of primary WHO Grade IV malignant glioma, now recurrent. Patients with prior low-grade glioma or anaplastic glioma are eligible, if histologic assessment demonstrates transformation to GBM.
 
The address of the Company’s administrative offices is Suite 720 - 999 West Broadway, Vancouver, British Columbia, V5Z 1K5 with clinical operations located at 3485 Edison Way, Suite R, Menlo Park, California, 94025
 
Liquidity risk
 
For the six months ended June 30, 2013, the Company reported a net loss of $14,218,945 and an accumulated deficit of $21,792,762 at that date.  As at June 30, 2013, the Company has cash and cash equivalents of $6,282,992 and a working capital balance of $5,853,459. The Company does not have the prospect of achieving any significant revenues in the immediate near future and the Company will require additional funding to maintain its research and development projects and for general operations. There is a large degree of uncertainty as to the expenses the Company will incur in developing and pursuing its business plan. In addition, the Company has not begun to generate revenues from any product candidate.
 
Consequently, in the future management will need to pursue various financing alternatives to fund the Company’s operations so it can continue as a going concern in the medium to longer term. Accordingly, the Company is considered to be in the development stage as defined in Accounting Standards Codification (ASC) 915-10. In the first quarter of 2013 the Company completed financing activities related to a unit offering for net proceeds of approximately $8,575,000 (note 7 (b)) and we believe, based on our current estimates, that we will be able to fund our operations for at least 21 months.
 
There could be material differences in our cost estimates or there can be unforeseen events, problems or delays will occur that would require us to seek additional debt and/or equity funding. The ability of the Company to meet its obligations and continue the research and development of its product candidate is dependent on its ability to continue to raise adequate financing. There can be no assurance that such financing will be available to the Company in the amount required at any time or for any period or, if available, that it can be obtained on terms satisfactory to the Company. The Company may tailor its drug candidate program based on the amount of funding it raises.
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Significant accounting policies
6 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]
Significant accounting policies
2  
Significant accounting policies
 
Basis of presentation
 
The consolidated condensed interim financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”) and are presented in United States dollars. The Company’s functional currency is the United States dollar.
 
In the quarter ended March 31, 2013, the Company’s functional currency changed from Canadian dollars to United States dollars as a result of the varying objective factors. Therefore translation of goods and services in a foreign currency is re-measured to the functional currency of the Company with gains and losses on re-measurement recorded in the consolidated condensed statement of loss. Any gains and losses that were previously recorded in accumulated other comprehensive income is unchanged from the date of the change of functional currency which was January 1, 2013.
 
The accompanying consolidated condensed interim financial statements include the accounts of the Company and its wholly-owned subsidiaries, DelMar Pharmaceuticals, (BC) Ltd., 0959454 B.C. Ltd., a British Columbia corporation (“Callco”), and 0959456 B.C. Ltd., a British Columbia corporation (“Exchangeco”). All intercompany balances and transactions have been eliminated.
 
The principal accounting policies applied in the preparation of these financial statements are set out below and have been consistently applied to all periods presented.
 
Unaudited interim financial data
 
The accompanying unaudited June 30, 2013 consolidated condensed balance sheets, the consolidated condensed interim statements of loss and comprehensive loss for the three and six months ended June 30, 2013 and 2012, consolidated condensed interim statement of changes in stockholders’ deficiency,  and consolidated condensed cash flows for the six months ended June 30, 2013 and 2012, and the related interim information contained within the notes to the consolidated condensed interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by accounting principles generally accepted in the United States for complete financial statements. These consolidated condensed financial statements should read in conjunction with the annual financial statements as at December 31, 2012 filed in our Form 8-K/A on March 28, 2013. In the opinion of management, the unaudited consolidated condensed interim financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair statement of the Company’s financial position at June 30, 2013 and results of its operations for the three and six months ended June 30, 2013 and 2012, and its cash flows for the six months ended June 30, 2013 and 2012. The results for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013 or for any other future annual or interim period.
 
Use of estimates
 
The preparation of consolidated condensed interim financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end or during the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability and the valuation of equity instruments issued for services. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements.
 
a)  
Fair value of derivative liability
 
The derivative is not traded in an active market and the fair value is determined using valuation techniques. The Company uses judgment to select a variety of methods to make assumptions that are based on specific management plans and market conditions at the end of each reporting period. The Company uses a fair value estimate to determine the fair value of the derivative liability. The carrying value of the derivative liability would be higher or lower as management estimates around specific probabilities change. The estimates may be significantly different from those recorded in the financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the statement of loss each reporting period. This is considered to be a Level 3 financial instrument.
 
Clinical trial expenses
 
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other vendors who conduct certain product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period.
 
Shares for services
 
The Company has issued equity instruments for services provided by employees and non-employees. The equity instruments are valued at the fair value of the instrument granted (see notes 6 and 7 for assumptions) based on the completion of these services.
 
In prior periods the Company transferred shares from the DelMar Employee Share Purchase Trust (the “Trust”) to consultants and management in exchange for services rendered to the Company. The Company recognized the fair value of the shares transferred as an expense with a corresponding increase in common stock. The shares reserved for issuance to consultants and management that are held by the Trust are included in the financial statements at year end. There are no other assets in the Trust.
 
The shares transferred from the Trust in prior periods have been valued using the fair value of the shares transferred. The Company has used recent share transactions in order to determine the fair value of the shares transferred from the Trust.
 
Stock options
 
The Company accounts for these awards under ASC 718, “Compensation - Stock Compensation” (“ASC 718”). ASC 718 requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period for awards expected to vest. Compensation expense for unvested options to non-employees is revalued at each period end and is being amortized over the vesting period of the options. The determination of grant-date fair value for stock option awards is estimated using the Black-Scholes model, which includes variables such as the expected volatility of the Company’s share price, the anticipated exercise behavior of its grantee, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material adjustments to the expense recognized for share-based payments. Such value is recognized as expense over the requisite service period, net of estimated forfeitures, using the straight-line attribution method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including type of awards granted, employee class, and historical experience. Actual results and future estimates may differ substantially from current estimates.
  
Derivative liability
 
The Company accounts for certain warrants under the authoritative guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock, on the understanding that in compliance with applicable securities laws, the warrants require the issuance of securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. The Company classifies warrants in its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. As quoted prices for the derivative liability are not available, the Company uses a simulated probability valuation model to value the warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of similar life sciences companies. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term (note 8).
 
Loss per share
 
Loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants is anti-dilutive. Diluted income per share is calculated using the treasury stock method which uses the weighted average number of common shares outstanding during the period and also includes the dilutive effect of potentially issuable common shares from outstanding stock options and warrants. At June 30, 2013, potential common shares of 24,985,009 (June 30, 2012 – 3,360,000) relating to warrants and 1,140,000 (June 30, 2012 - 1,020,000) relating to stock options were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive.
 
Segment information
 
The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being North America. All of the Company’s assets and headquarters are located in Canada while its clinical operations are conducted in the United States.
 
Recent accounting pronouncements
 
The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these financial statements as presented and does not anticipate the need for any future restatement of these financial statements because of the retro-active application of any accounting pronouncements issued subsequent to June 30, 2013 through the date these financial statements were issued.
 
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Reverse acquisition
6 Months Ended
Jun. 30, 2013
Reverse Acquisition [Abstract]
Reverse acquisition
3  
Reverse acquisition
 
On January 25, 2013 (the “Closing Date”), the Company entered into and closed an exchange agreement (the “Exchange Agreement”), with DelMar (BC), Callco, Exchangeco, and the securityholders of DelMar (BC). Pursuant to the Exchange Agreement, (i) the Company issued 4,340,417 shares of common stock  (the “Parent Shares”) to the shareholders of DelMar (BC) who are United States residents (the “U.S. Holders”) in exchange for the transfer to Exchangeco of all 4,340,417 outstanding common shares of DelMar (BC) held by the U.S. Holders, (ii) the shareholders of DelMar (BC) who are Canadian residents (the “Canadian Holders”) received, in exchange for the transfer to Exchangeco of all 8,729,583 outstanding common shares of DelMar (BC) held by the Canadian Holders, 8,729,583 exchangeable shares (the “Exchangeable Shares”) of Exchangeco, and (iii) outstanding warrants to purchase 3,360,000 common shares of DelMar (BC) and outstanding options to purchase 1,020,000 common shares of DelMar (BC) were deemed to be amended such that,  rather than entitling the holder to acquire common shares of DelMar (BC), such options and warrants will entitle the holders to acquire shares of common stock of the Company. The Canadian Holders will be entitled to require Exchangeco to redeem (or, at the option of the Company or Callco, to have the Company or Callco purchase) the Exchangeable Shares, and upon such redemption or purchase to receive an equal number of shares of common stock of the Company. The aggregate of 13,070,000 shares of common stock of the Company issued to the former shareholders of DelMar (BC) (on an as-exchanged basis with respect to the Exchangeable Shares) represents 80.1% of the outstanding shares of common stock of the Company following the closing of the Exchange Agreement (the “Reverse Acquisition”).
 
Upon completion of the Reverse Acquisition DelMar (BC) became a wholly-owned subsidiary of the Company. As a result of the shareholders of DelMar (BC) having a controlling interest in the Company subsequent to the Reverse Acquisition, for accounting purposes the transaction is a capital transaction with DelMar (BC) being the accounting acquirer even though the legal acquirer is Berry. No goodwill is recorded with respect to the transaction as it does not constitute a business combination. For accounting purposes, the transaction is reflected as a recapitalization of DelMar (BC) and consideration for the Reverse Acquisition was deemed to be the fair value of the shares that were issued by DelMar (BC) to acquire the net liabilities of Berry on January 25, 2013. The net identifiable liabilities of Berry on the Closing Date of the Reverse Acquisition were as follows:
 
   $     
         
Net liabilities (derivative liability)
  2,041,680     
 
The Company determined the fair value of the shares issued on the Reverse Acquisition to be $1,690,004. As a result of the Reverse Acquisition being treated as a recapitalization of DelMar (BC) the Company recognized the loss of $3,731,684 incurred upon the closing of the Reverse Acquisition as an adjustment to opening deficit in the consolidated condensed interim statement of changes in stockholders’ deficiency at June 30, 2013.
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Valent Technologies LLC agreement
6 Months Ended
Jun. 30, 2013
Valent Technologies Llc Agreement [Abstract]
Valent Technologies LLC agreement
4  
Valent Technologies LLC agreement
 
Pursuant to a loan agreement dated February 3, 2011, the Company received a loan from Valent Technologies LLC (“Valent”) of $250,000 for the purchase of the prototype drug product. The loan is payable on demand, unsecured, and bears interest at 3.00% per year. The loan payable balance at June 30, 2013 is $268,299 including accrued interest of $18,299. The Company has accrued interest of $1,992 for the three months ended June 30, 2013 (June 30, 2012 - $1,876) and has accrued interest of $3,947 for the six months ended June 30, 2013 (June 30, 2012 - $3,740). As a result of the Company’s expectation as to the timing of the repayment of the Valent loan, the Company has presented the full loan and accrued interest balance as a non-current liability at June 30, 2013 and December 31, 2012.
 
Pursuant to its agreement with Valent, the Company agreed to issue warrants to Valent under certain circumstances. The financing completed by the Company that closed in February 2012 resulted in the Company issuing 500,000 warrants to Valent on February 1, 2012 at an exercise price of CDN$0.50 per warrant (note 7). In exchange for the warrants Valent has assigned all of its right, title and interest in and to the patents for VAL-083 to the Company. The fair value of the contingent warrants of $89,432 has been recognized as an expense and a corresponding increase to additional paid-in capital.
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Related party transactions
6 Months Ended
Jun. 30, 2013
Related Party Transactions [Abstract]
Related party transactions
5  
Related party transactions
 
During the six months ended June 30, 2013
 
Pursuant to consulting agreements with the Company’s officers and directors the Company pays a total of $36,784 per month to its officers and directors. Pursuant to these agreements the Company recognized a total of $220,704 in compensation expense for the six months ended June 30, 2013.
 
Included in accounts payable at June 30, 2013 is an aggregate amount owing of $42,455 (December 31, 2012 - $133,658) to the Company’s officers and directors for fees and expenses. The Company pays related party payables incurred for fees and expenses under normal commercial terms.
 
Included in related party payables at June 30, 2013 is an amount of $194,007 (December 31, 2012 - $314,119) relating to clinical development costs incurred by Valent on behalf of the Company. On April 30, 2012, Valent was issued 500,000 common shares for partial settlement of the Company’s accounts payable balance with Valent. The total settlement amount was $253,050. Additionally, the Company also has a loan payable, including accrued interest, of $268,299 due to Valent at June 30, 2013 including accrued aggregate interest of $18,299 to June 30, 2013. One of the directors and officers of the Company is also a Principal of Valent. As a result of the Company not expecting to repay Valent within the next twelve months, the balance of the loan and accrued interest has been disclosed as a long-term liability.
 
On January 25, 2013, in connection with the Reverse Acquisition (note 3), Valent was issued 1,150,000 shares of common stock of the Company in exchange for Valent reducing certain future royalties under the Assignment Agreement (note 7(c)). As a result of the share issuance the Company has recognized an expense of $598,000 for the six months ended June 30, 2013.
 
The Company paid $15,000 (June 30, 2012 – $0) in directors’ fees during the six months ended June 30, 2013.
 
During the six months ended June 30, 2012
 
Pursuant to consulting agreements with the Company’s officers and directors the Company paid a total of $26,973 per month to its directors. Under two of these agreements the directors have elected to receive a portion of their aggregate compensation in the form of units. During the six months ended June 30, 2012 the Company issued 360,000 units for a total amount of $180,144. The units issued relate to an amount of $15,012 per month from January to December 2012 inclusive.  As a result, the Company has recognized $45,036 and $90,072 respectively in services for the three and six months ended June 30, 2012 (note 6). Of the $90,072, $30,194 has been recognized as general and administrative and $59,878 has been recognized as research and development.
 
Included in the monthly amount of $26,973 under the consulting agreements the Company paid its offices and directors cash compensation totaling an aggregate $11,961 per month. The Company has paid $35,883 and $71,766 respectively for the three and six months ended June 30, 2012.
 
On February 1, 2012 the Company granted an aggregate of 450,000 stock options at an exercise price of CDN $0.50 to certain directors (note 7).
 
The Company transferred a total of 1,390,625 shares from the DelMar Employee Share Purchase Trust to its officers and directors.
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Derivative liability
6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability
6  
Derivative liability
 
The Company has issued stock purchase warrants. Based on the terms of certain of these warrants the Company determined that the warrants were a derivative liability which is recognized at fair value at the date of the transaction and re-measured at fair value each reporting period with the changes in fair value recorded in the consolidated condensed statement of loss and comprehensive loss.
 
CDN $0.50 Unit Warrants
 
The Company issued 4,150,000 units on January 23, 2012, 560,000 on February 27, 2012 and 50,000 on May 10, 2012. In addition, during the year ended December 31, 2011 the Company issued 500,000 units on October 3, 2011, 100,000 on October 7, 2011, and 50,000 on November 11, 2011. In total, the Company issued 5,410,000 units for services in settlement of accounts payable and cash proceeds for an aggregate of $2,671,923 (CDN $2,705,000).
 
The proceeds from the issuance of 3,000,000 of these units were held in escrow pursuant to an exclusive option investment agreement with a strategic investor. Subsequently, the Company elected to let the option expire and the related units were cancelled and the funds returned from escrow to the subscriber in order for the Company to retain control over certain intellectual property and commercial rights.
 
The warrants issued with the units have been re-valued at June 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 74%, risk free rate - 0.41% and a term of seven months.
 
Investor Warrants
 
In connection with the Reverse Acquisition (note 3), on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013, the Company entered into and closed a series of subscription agreements with accredited investors (the “Investors”), pursuant to which the Company issued an aggregate of 13,125,002 Units at a purchase price of $0.80 per Unit, for aggregate gross proceeds of $10,500,000 (the “Private Offering”). Each Unit consists of one share of common stock and one five-year warrant (the “Investor Warrants”) to purchase one share of common stock at an exercise price of $0.80. The exercise price of the Investor Warrants is subject to adjustment in the event that the Company sells common stock at a price lower than the exercise price, subject to certain exceptions. The Investor Warrants are redeemable by the Company at a price of $0.001 per Investor Warrant at any time subject to the conditions that (i) the Company’s common stock has traded for twenty (20) consecutive trading days with a closing price of at least $1.60 per share with an average trading volume of 50,000 shares per day and (ii) the underlying shares of common stock are registered.
 
The Investor Warrants issued with the units have been re-valued at June 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 100%, risk free rate - 1.6% and a term of approximately five years.
 
Dividend Warrants
 
As a result of the Reverse Acquisition, certain warrants that Berry issued pursuant a warrant dividend became warrants of the Company (the “Dividend Warrants”). The Dividend Warrants are exercisable at $1.25 per share until January 24, 2018. The Dividend Warrants will only be exercisable at such times as the underlying shares of common stock are registered. The Dividend Warrants will be redeemable by the Company at a price of $0.001 per Dividend Warrant at any time commencing 18 months following the date of issuance subject to the conditions that (i) the Company’s common stock has traded for twenty (20) consecutive trading days with a closing price of at least $2.50 per share and (ii) the underlying shares of common stock are registered. Subject to the conditions set forth therein, the Dividend Warrants may be redeemed by the Company upon not less than sixty (60) days nor more than ninety (90) days prior written notice.
 
The Dividend Warrants have been measured at fair value at June 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 100%, risk free rate - 1.6% and a term of approximately five years.
 
The Company’s derivative liability is summarized as follows:
 
   
June 30,
2013
$
  
December 31,
2012
$
 
        
Opening balance
  121,000   106,146 
          
Issuance of units
  3,681,372   333,356 
Dividend Warrant liability acquired on reverse acquisition
  2,041,680   - 
Change in fair value
  7,142,775   (318,502)
          
Closing balance
  12,986,827   121,000 
 
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Stockholders' deficiency
6 Months Ended
Jun. 30, 2013
Equity [Abstract]
Stockholders' deficiency
7  
Stockholders’ deficiency
 
Preferred stock
 
Authorized
5,000,000 preferred shares, $0.001 par value
 
Issued and outstanding at June 30, 2013 - 1 (December 31, 2012 - none)
 
In connection with the Exchange Agreement (note 3), on the Closing Date, the Company, Callco, Exchangeco and Computershare Trust Company of Canada (the “Trustee”) entered into a voting and exchange trust agreement (the “Trust Agreement”). Pursuant to the Trust Agreement, Company issued one share of Special Voting Preferred Stock (the “Special Voting Share”) to the Trustee, and the parties created a trust for the Trustee to hold the Special Voting Share for the benefit of the holders of the Exchangeable Shares (other than the Company and any affiliated companies) (the “Beneficiaries”). Pursuant to the Trust Agreement, the Beneficiaries will have voting rights in the Company equivalent to what they would have had they received shares of common stock in the same amount as the Exchangeable Shares held by the Beneficiaries.
 
In connection with the Exchange Agreement and the Trust Agreement, on January 17, 2013, the Company filed a certificate of designation of Special Voting Preferred Stock (the “Special Voting Certificate of Designation”) with the Secretary of State of Nevada. Pursuant to the Special Voting Certificate of Designation, one share of the Company’s blank check preferred stock was designated as Special Voting Preferred Stock. The Special Voting Preferred Stock votes as a single class with the common stock and is entitled to a number of votes equal to the number of Exchangeable Shares of Exchangeco outstanding as of the applicable record date (i) that are not owned by the Company or any affiliated companies and (ii) as to which the holder has received voting instructions from the holders of such Exchangeable Shares in accordance with the Trust Agreement.
 
The Special Voting Preferred Stock is not entitled to receive any dividends or to receive any assets of the Company upon any liquidation, and is not convertible into common stock of the Company.
 
The voting rights of the Special Voting Preferred Stock will terminate pursuant to and in accordance with the Trust Agreement. The Special Voting Preferred Stock will be automatically cancelled at such time as the share of Special Voting Preferred Stock has no votes attached to it.
 
Common stock
 
Authorized
200,000,000 common shares, $0.001 par value
 
Issued and outstanding at June 30, 2013 - 31,150,009 (December 31, 2012 - 13,050,000).  The issued and outstanding common shares include 8,729,583 shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares (note 3).
 
a)  
Shares issued for the Reverse Acquisition
 
On January 25, 2013, the Company entered into and closed an Exchange Agreement with DelMar (BC) (note 3). The Reverse Acquisition resulted in the Company acquiring DelMar (BC) by issuing a sufficient number of shares such that the shareholders of DelMar (BC) had a controlling interest in the Company subsequent to the completion of the Reverse Acquisition. At the time of the Reverse Acquisition, there were 13,070,000 common shares of DelMar (BC) and 3,250,007 shares of common stock of the Company issued and outstanding. All of the 13,070,000 shares of DelMar (BC) were acquired either directly or indirectly (through Exchangeco) by the Company resulting in DelMar (BC) becoming a wholly owned subsidiary of the Company.
 
As a result of the shareholders of DelMar (BC) having a controlling interest in the Company subsequent to the Reverse Acquisition, for accounting purposes the transaction constitutes a reverse recapitalization with DelMar (BC) being the accounting acquirer even though legally the Company is the acquirer. Therefore, for accounting purposes, the Company is shown to have issued 3,250,007 common shares for the Reverse Acquisition (note 3).
 
b)  
$0.80 Unit offering
 
In connection with the Reverse Acquisition, on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013, the Company entered into and closed a series of subscription agreements with accredited investors (the “Investors”), pursuant to which the Company issued an aggregate of 13,125,002 Units at a purchase price of $0.80 per Unit, for aggregate gross proceeds of $10,500,000 (the “Private Offering”). Each Unit consists of one share of common stock and one five-year warrant (the “Investor Warrants”) to purchase one share of common stock at an exercise price of $0.80. The exercise price of the Investor Warrants is subject to adjustment and the Investor Warrants are redeemable under certain circumstances (note 6).
  
The Company retained Charles Vista, LLC (the “Placement Agent”) as the placement agent for the Private Offering. The Company paid the Placement Agent a cash fee of $1,050,000 (equal to 10% of the gross proceeds), a non-accountable expense allowance of $315,000 (equal to 3% of the gross proceeds), and a one-year consulting fee of $60,000. In addition, the Company incurred other unit issue and closings costs of approximately $500,000 resulting in net proceeds to the Company of $8,575,000. Certain of the additional closing costs are not eligible to be treated as share issue costs and as a result they have been expensed. Net unit proceeds per the consolidated condensed interim statements of cash flows include gross unit proceeds less cash share issue costs attributable to the shares only. The portion of the unit issue costs attributable to the derivative liability has been expensed.
 
In addition, the Company issued to the Placement Agent five-year warrants (the “Placement Agent Warrants”) to purchase 5,250,000 shares of common stock (equal to 20% of the shares of common stock (i) included as part of the Units sold in the Private Offering and (ii) issuable upon exercise of the Investor Warrants) at an exercise price of $0.80, exercisable on a cash or cashless basis.  When the warrants are exercised on a cashless basis the number of shares to be issued is dependent on the Company’s closing share price for the immediately preceding 20 trading days.
 
The Company also engaged the Placement Agent as its warrant solicitation agent in the event the Investor Warrants are called for redemption and will pay a warrant solicitation fee to the Placement Agent equal to 5% of the amount of funds solicited by the Placement Agent upon the exercise of the Investor Warrants following such redemption.
 
In connection with the Private Offering, the Company entered into a registration rights agreement with the Investors, pursuant to which the Company agreed to file a registration statement (the “Registration Statement”) registering for resale all shares of common stock (a) included in the Units; and (b) issuable upon exercise of the Investor Warrants, no later than 90 days after the completion of the Private Offering (the “Filing Deadline”) and to use commercially reasonable efforts to cause the Registration Statement to become effective within 180 days of the Filing Deadline. The Company agreed to use commercially reasonably efforts to keep the Registration Statement effective while the Investor Warrants are outstanding.
 
Certain of the Private Offering costs were incurred by the Company prior to December 31, 2012. These costs of $90,771 were treated as issue costs during the three months ended June 30, 2013.
 
c)  
Shares issued to Valent for future royalty reduction
 
Simultaneous with the Reverse Acquisition, the Company issued to Valent 1,150,000 shares of common stock in exchange for Valent reducing certain future royalties under its Assignment Agreement with the Company (note 5).
  
d)  
Shares issued for services
 
Pursuant to a consulting agreement dated May 1, 2012 the Company issued 20,000 shares of common stock per month from June 1, 2012 to May 1, 2013 inclusive. Under this agreement the Company has issued a total of 100,000 shares of common stock during the six months ended June 30, 2013. The shares have been valued using the fair value of the Company shares as referenced to recent shares issuance by the Company or to the Company’s closing share price on the date the shares for services were issued.  A total of $142,557 in expense has been recognized for these shares for the six months ended June 30, 2013.
 
In addition to the shares issued under the May 1, 2012 consulting agreement during the six months ended June 30, 2013 the Company issued an additional 475,000 common shares for services resulting in the recognition of $855,000 in expense.
 
The total share-based payment expense of $997,557 has been recognized in general and administrative expense for the six months ended June 30, 2013.
 
Stock Options
 
On February 1, 2012 DelMar (BC)’s board of directors approved its stock option plan (the “Plan”). As a result of the Reverse Acquisition (note 3), the Plan became the stock option plan of the Company.  Under the Plan the number of common shares that will be reserved for issuance to officers, directors, employees and consultants under the Plan will not exceed 7.5% of the share capital of the Company on a fully diluted basis. On February 1, 2012 the DelMar (BC) granted 930,000 options and on June 15, 2012 an additional 90,000 options were granted under the Plan. All of the stock options under these grants have an exercise price of CDN $0.50 and expire 10 years from the date of grant. Of the 1,020,000 stock options granted, 450,000 vest in equal monthly installments over one year and 570,000 vest in equal monthly installments over three years. Included in the total number of stock options granted were 450,000 granted in equal tranches to certain of the Company’s directors.  As a result of the Reverse Acquisition (note 3) the 1,020,000 stock options outstanding at January 25, 2013 became exercisable into shares of common stock of the Company.
 
In the event of the sale of 66 2/3% of the equity securities of the Company where equity securities include shares, warrants, stock options, and any convertible securities of the Company, any options not yet granted under the Plan shall be deemed granted to the principle founders of the Company on a pro-rata basis in accordance with their ownership of the Company on a fully-diluted basis immediately prior to the closing of such a sale. 
 
The following table sets forth the options outstanding under the Plan are as follows:
 
   
Number of
stock
options
outstanding
  
Weighted
average
exercise
price
$
 
        
Balance - December 31, 2012
  1,020,000   0.48 
Granted
  240,000   1.92 
Cancelled
  (120,000)  0.48 
Balance – June 30, 2013
  1,140,000   0.78 
 
The following table summarizes stock options currently outstanding and exercisable at June 30, 2013:
 
 
Exercise price
$
 
Number
outstanding at
June 30,
2013
  
Weighted
average
remaining
contractual
life
(years)
  
Weighted
average
exercise
price
$
  
Number
exercisable
at
June 30,
2013
  
Exercise
price
$
 
                 
 0.48   900,000   8.59   0.48   650,917   0.48 
 1.54   120,000   9.75   1.54   59,333   1.54 
 2.30   120,000   9.92   2.30   9,667   2.30 
     1,140,000       0.78   719,917   0.59 
 
Included in the number of stock options outstanding are 900,000 stock options granted at an exercise price of CDN $0.50.  The exercise prices shown in the above table have been converted to $USD using the period ending closing exchange rate.   Certain stock options have been granted to non-employees and will be revalued at each reporting date until they have fully vested. The stock options have been valued using a Black-Scholes pricing model using the following assumptions:
 
   
June 30,
2013
  
Grant
Date
 
        
Dividend rate
  0%  0%
Volatility
  84.8%  97.3%
Risk-free rate
  1.25%  1.25%
Term - years
  2.00   3.0 
 
During the quarter ended March 31, 2013 the Company’s functional currency changed from $CDN to $USD. As a result, certain stock options previously granted by the Company are now recognized as a long-term liability.
 
The Company has recognized the following amounts as stock-based compensation expense for the periods noted:
 
2013$ 
   
Three months ended
June 30,
  
Six months ended
June 30,
 
              
       
2012
   
2013
   
2012
 
                  
Research and development
  156,656   50,172   309,136   111,241 
General and administrative
  161,929   21,438   213,794   48,788 
                 
    318,585   71,610   522,930   160,029 
 
The aggregate intrinsic value of stock options outstanding at June 30, 2013 was $1,529,340 and the aggregate intrinsic value of stock options exercisable at June 30, 2013 was $1,090,706. As of June 30, 2013 there was $287,072 in unrecognized compensation expense that will be recognized over the next eighteen months. No stock options have been exercised under the Plan.
 
A summary of status of the Company’s unvested stock options under all plans is presented below:
 
   
Number of
Options
  
Weighted
average
exercise
price
$
  
Weighted
average
grant date
fair value
$
 
           
Unvested at December 31, 2012
  444,500   0.48   0.30 
Granted
  240,000   1.92   1.05 
Cancelled
  (120,000)  0.48   0.30 
Vested
  (144,417)  1.17   0.66 
              
Unvested at June 30, 2013
  420,083   1.06   0.61 
 
Warrants
 
   
Number of
Warrants
  
Amount
$
 
        
Balance - December 31, 2012
  950,000   153,106 
          
Warrants issued as unit issue costs
  5,250,000   6,288,594 
          
Balance - June 30, 2013
  6,200,000   6,441,700 
 
As part of the Company’s unit offering the Company has issued 5,250,000 Placement Agent Warrants (note 7(b)). The Placement Agent Warrants have been recognized as non-cash issue costs and costs have been allocated to common stock and derivative liability. The portion allocated to additional period in capital was $4,087,586 and the portion allocated to derivative liability was $2,201,008. The Placement Agent warrants have been valued using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 104%, risk free rate - 1.0% and a term of five years.
 
Certain of the Company’s warrants have been recognized as a derivative liability (note 6). Below is a table that summarizes all of the Company’s outstanding warrants as of June 30, 2013:
 
Description
 
Number
 
     
CDN $0.50 warrants (note 6) (i)
  2,410,000 
Issued as broker warrants (ii)
  105,000 
Issued for patents (iii)
  500,000 
Issued for services (iv)
  345,000 
Investor Warrants (note 6) (v)
  13,125,002 
Dividend warrants (note 6)(vi)
  3,250,007 
Placement Agent (note 7(b))(vii)
  5,250,000 
      
Closing balance - June 30, 2013
  24,985,009 
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $0.96 per warrant until July 25, 2013 and $1.20 per warrant from July 26, 2013 until January 25, 2014. A total of 241,000 warrants are exercisable for no additional consideration.
 
ii)  
The Company has issued broker warrants as finder’s fees in relation to the issuance of certain of the CDN $0.50 units issued during the years ended December 31, 2011 and 2012. All of the warrants were issued on March 1, 2012 and have an exercise price of CDN $0.50 per warrant. Of the total, 100,000 expire March 1, 2015 and 5,000 expire March 1, 2014.
 
iii)  
The Company issued 500,000 warrants to Valent (note 3). The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
 
iv)  
The Company has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2015.
 
v)  
The Investor Warrants were issued as part of the Company’s $0.80 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively (note 7(b)). They are exercisable at $0.80 per warrant for five years commencing from their respective issue dates.
 
vi)  
The Dividend Warrants are exercisable at $1.25 per warrant until January 24, 2018.
 
vii)  
The Placement Agent Warrants are exercisable at $0.80 per warrant until March 6, 2018 but can be exercise on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
 
 
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Financial instruments
6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]
Financial instruments
8  
Financial instruments
 
The Company has financial instruments that are measured at fair value. To determine the fair value, we use the fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use to value an asset or liability and are developed based on market data obtained from independent sources. Unobservable inputs are inputs based on assumptions about the factors market participants would use to value an asset or liability. The three levels of inputs that may be used to measure fair value are as follows:
 
·  
Level one - inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities;
 
·  
Level two - inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and
 
·  
Level three - unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.
 
Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.
 
The Company’s financial instruments consist of cash and cash equivalents, other receivables, accounts payable, related party payables and derivative liability. The carrying values of cash and cash equivalents, other receivables, accounts payable and related party payables approximate their fair values due to the immediate or short-term maturity of these financial instruments.
 
As quoted prices for the derivative liability are not readily available, the Company has used a simulated probability valuation model, as described in note 2 to estimate fair value. The derivative liability utilizes Level 3 inputs as defined above.
 
The Company has the following liabilities under the fair value hierarchy:
 
    June 30, 2013 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   12,986,827 
 
    December 31, 2012 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   121,000
 
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Subsequent events
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]
Subsequent events
9  
Subsequent events
 
Exercise of warrants
 
Subsequent to June 30, 2013, 200,000 Placement Agent Warrants were exercised on a cashless basis for 123,810 shares of common stock (note 7 (b)).
 
In addition, 186,000 CDN $0.50 warrants were exercised for no additional consideration.
 
Exchangeco conversion
 
Subsequent to June 30, 2013, 100,000 Exchangeco shares were exchanged for shares of the Company (note 3).
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Significant accounting policies (Policies)
6 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]
Basis of presentation
Basis of presentation
 
The consolidated condensed interim financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”) and are presented in United States dollars. The Company’s functional currency is the United States dollar.
 
In the quarter ended March 31, 2013, the Company’s functional currency changed from Canadian dollars to United States dollars as a result of the varying objective factors. Therefore translation of goods and services in a foreign currency is re-measured to the functional currency of the Company with gains and losses on re-measurement recorded in the consolidated condensed statement of loss. Any gains and losses that were previously recorded in accumulated other comprehensive income is unchanged from the date of the change of functional currency which was January 1, 2013.
 
The accompanying consolidated condensed interim financial statements include the accounts of the Company and its wholly-owned subsidiaries, DelMar Pharmaceuticals, (BC) Ltd., 0959454 B.C. Ltd., a British Columbia corporation (“Callco”), and 0959456 B.C. Ltd., a British Columbia corporation (“Exchangeco”). All intercompany balances and transactions have been eliminated.
 
The principal accounting policies applied in the preparation of these financial statements are set out below and have been consistently applied to all periods presented.
Unaudited interim financial data
Unaudited interim financial data
 
The accompanying unaudited June 30, 2013 consolidated condensed balance sheets, the consolidated condensed interim statements of loss and comprehensive loss for the three and six months ended June 30, 2013 and 2012, consolidated condensed interim statement of changes in stockholders’ deficiency,  and consolidated condensed cash flows for the six months ended June 30, 2013 and 2012, and the related interim information contained within the notes to the consolidated condensed interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all of the information and the notes required by accounting principles generally accepted in the United States for complete financial statements. These consolidated condensed financial statements should read in conjunction with the annual financial statements as at December 31, 2012 filed in our Form 8-K/A on March 28, 2013. In the opinion of management, the unaudited consolidated condensed interim financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for the fair statement of the Company’s financial position at June 30, 2013 and results of its operations for the three and six months ended June 30, 2013 and 2012, and its cash flows for the six months ended June 30, 2013 and 2012. The results for the three and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013 or for any other future annual or interim period.
Use of estimates
Use of estimates
 
The preparation of consolidated condensed interim financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions about future events that affect the reported amounts of assets, liabilities, expenses, contingent assets and contingent liabilities as at the end or during the reporting period. Actual results could significantly differ from those estimates. Significant areas requiring management to make estimates include the derivative liability and the valuation of equity instruments issued for services. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements.
 
a)  
Fair value of derivative liability
 
The derivative is not traded in an active market and the fair value is determined using valuation techniques. The Company uses judgment to select a variety of methods to make assumptions that are based on specific management plans and market conditions at the end of each reporting period. The Company uses a fair value estimate to determine the fair value of the derivative liability. The carrying value of the derivative liability would be higher or lower as management estimates around specific probabilities change. The estimates may be significantly different from those recorded in the financial statements because of the use of judgment and the inherent uncertainty in estimating the fair value of these instruments that are not quoted in an active market. All changes in the fair value are recorded in the statement of loss each reporting period. This is considered to be a Level 3 financial instrument.
Clinical trial expenses
Clinical trial expenses
 
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other vendors who conduct certain product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements are based on estimates of the work performed using an accrual basis of accounting. These estimates are based on patient enrollment, services provided and goods delivered, contractual terms and experience with similar contracts. The Company monitors these factors to the extent possible and adjusts our estimates accordingly. Prepaid expenses or accrued liabilities are adjusted if payments to service providers differ from estimates of the amount of service completed in a given period.
Share for services
Shares for services
 
The Company has issued equity instruments for services provided by employees and non-employees. The equity instruments are valued at the fair value of the instrument granted (see notes 6 and 7 for assumptions) based on the completion of these services.
 
In prior periods the Company transferred shares from the DelMar Employee Share Purchase Trust (the “Trust”) to consultants and management in exchange for services rendered to the Company. The Company recognized the fair value of the shares transferred as an expense with a corresponding increase in common stock. The shares reserved for issuance to consultants and management that are held by the Trust are included in the financial statements at year end. There are no other assets in the Trust.
 
The shares transferred from the Trust in prior periods have been valued using the fair value of the shares transferred. The Company has used recent share transactions in order to determine the fair value of the shares transferred from the Trust.
Stock options
Stock options
 
The Company accounts for these awards under ASC 718, “Compensation - Stock Compensation” (“ASC 718”). ASC 718 requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation over the requisite service period for awards expected to vest. Compensation expense for unvested options to non-employees is revalued at each period end and is being amortized over the vesting period of the options. The determination of grant-date fair value for stock option awards is estimated using the Black-Scholes model, which includes variables such as the expected volatility of the Company’s share price, the anticipated exercise behavior of its grantee, interest rates, and dividend yields. These variables are projected based on the Company’s historical data, experience, and other factors. Changes in any of these variables could result in material adjustments to the expense recognized for share-based payments. Such value is recognized as expense over the requisite service period, net of estimated forfeitures, using the straight-line attribution method. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including type of awards granted, employee class, and historical experience. Actual results and future estimates may differ substantially from current estimates.
Derivative liability
Derivative liability
 
The Company accounts for certain warrants under the authoritative guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own stock, on the understanding that in compliance with applicable securities laws, the warrants require the issuance of securities upon exercise and do not sufficiently preclude an implied right to net cash settlement. The Company classifies warrants in its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. As quoted prices for the derivative liability are not available, the Company uses a simulated probability valuation model to value the warrants. Determining the appropriate fair-value model and calculating the fair value of warrants requires considerable judgment. Any change in the estimates used may cause the value to be higher or lower than that reported. The estimated volatility of the Company’s common stock at the date of issuance, and at each subsequent reporting period, is based on the historical volatility of similar life sciences companies. The risk-free interest rate is based on rates published by the government for bonds with a maturity similar to the expected remaining life of the warrants at the valuation date. The expected life of the warrants is assumed to be equivalent to their remaining contractual term (note 8).
Loss per share
Loss per share
 
Loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants is anti-dilutive. Diluted income per share is calculated using the treasury stock method which uses the weighted average number of common shares outstanding during the period and also includes the dilutive effect of potentially issuable common shares from outstanding stock options and warrants. At June 30, 2013, potential common shares of 24,985,009 (June 30, 2012 – 3,360,000) relating to warrants and 1,140,000 (June 30, 2012 - 1,020,000) relating to stock options were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive.
Segment information
Segment information
 
The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being North America. All of the Company’s assets and headquarters are located in Canada while its clinical operations are conducted in the United States.
Recent accounting pronouncements
Recent accounting pronouncements
 
The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these financial statements as presented and does not anticipate the need for any future restatement of these financial statements because of the retro-active application of any accounting pronouncements issued subsequent to June 30, 2013 through the date these financial statements were issued.
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Reverse acquisition (Tables)
6 Months Ended
Jun. 30, 2013
Reverse Acquisition [Abstract]
Schedule of reverse acquisition
 
 
   $     
         
Net liabilities (derivative liability)
  2,041,680     
 
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Derivative liability (Tables)
6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of change in derivative liabilities
 
 
   
June 30,
2013
$
  
December 31,
2012
$
 
        
Opening balance
  121,000   106,146 
          
Issuance of units
  3,681,372   333,356 
Dividend Warrant liability acquired on reverse acquisition
  2,041,680   - 
Change in fair value
  7,142,775   (318,502)
          
Closing balance
  12,986,827   121,000 
 
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Stockholders' deficiency (Tables)
6 Months Ended
Jun. 30, 2013
Equity [Abstract]
Schedule of options outstanding under the plan
 
   
Number of
stock
options
outstanding
  
Weighted
average
exercise
price
$
 
        
Balance - December 31, 2012
  1,020,000   0.48 
Granted
  240,000   1.92 
Cancelled
  (120,000)  0.48 
Balance – June 30, 2013
  1,140,000   0.78 
 
Schedule of stock options currently outstanding and exercisable
Exercise price
$
  
Number
outstanding at
June 30,
2013
  
Weighted
average
remaining
contractual
life
(years)
  
Weighted
average
exercise
price
$
  
Number
exercisable
at
June 30,
2013
  
Exercise
price
$
 
                 
 0.48   900,000   8.59   0.48   650,917   0.48 
 1.54   120,000   9.75   1.54   59,333   1.54 
 2.30   120,000   9.92   2.30   9,667   2.30 
     1,140,000       0.78   719,917   0.59 
 
Schedule of stock options valuation assumptions using a Black-Scholes pricing model
 
   
June 30,
2013
  
Grant
Date
 
        
Dividend rate
  0%  0%
Volatility
  84.8%  97.3%
Risk-free rate
  1.25%  1.25%
Term - years
  2.00   3.0 
 
Schedule of stock-based compensation expense
 
   
Three months ended
June 30,
  
Six months ended
June 30,
 
              
    
2013
$
   
2012
   
2013
   
2012
 
                  
Research and development
  156,656   50,172   309,136   111,241 
General and administrative
  161,929   21,438   213,794   48,788 
                  
    318,585   71,610   522,930   160,029 
 
Schedule of unvested stock options
 
   
Number of
Options
  
Weighted
average
exercise
price
$
  
Weighted
average
grant date
fair value
$
 
           
Unvested at December 31, 2012
  444,500   0.48   0.30 
Granted
  240,000   1.92   1.05 
Cancelled
  (120,000)  0.48   0.30 
Vested
  (144,417)  1.17   0.66 
              
Unvested at June 30, 2013
  420,083   1.06   0.61
 
Schedule of warrants
 
   
Number of
Warrants
  
Amount
$
 
        
Balance - December 31, 2012
  950,000   153,106 
          
Warrants issued as unit issue costs
  5,250,000   6,288,594 
          
Balance - June 30, 2013
  6,200,000   6,441,700 
 
Schedule of outstanding warrants
Description
 
Number
 
     
CDN $0.50 warrants (note 6) (i)
  2,410,000 
Issued as broker warrants (ii)
  105,000 
Issued for patents (iii)
  500,000 
Issued for services (iv)
  345,000 
Investor Warrants (note 6) (v)
  13,125,002 
Dividend warrants (note 6)(vi)
  3,250,007 
Placement Agent (note 7(b))(vii)
  5,250,000 
      
Closing balance - June 30, 2013
  24,985,009 
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $0.96 per warrant until July 25, 2013 and $1.20 per warrant from July 26, 2013 until January 25, 2014. A total of 241,000 warrants are exercisable for no additional consideration.
 
ii)  
The Company has issued broker warrants as finder’s fees in relation to the issuance of certain of the CDN $0.50 units issued during the years ended December 31, 2011 and 2012. All of the warrants were issued on March 1, 2012 and have an exercise price of CDN $0.50 per warrant. Of the total, 100,000 expire March 1, 2015 and 5,000 expire March 1, 2014.
 
iii)  
The Company issued 500,000 warrants to Valent (note 3). The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
 
iv)  
The Company has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2015.
 
v)  
The Investor Warrants were issued as part of the Company’s $0.80 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively (note 7(b)). They are exercisable at $0.80 per warrant for five years commencing from their respective issue dates.
 
vi)  
The Dividend Warrants are exercisable at $1.25 per warrant until January 24, 2018.
 
vii)  
The Placement Agent Warrants are exercisable at $0.80 per warrant until March 6, 2018 but can be exercise on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
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Financial instruments (Tables)
6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative liabilities under the fair value hierarchy
 
    June 30, 2013 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   12,986,827 
 
    December 31, 2012 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   121,000 
 
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Nature of operations and liquidity risk (Detail Textuals) (USD $)
3 Months Ended 6 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Going Concern and Nature Of Operations [Abstract]
Net loss $ (6,813,626) $ (1,137,726) $ (14,218,945) $ (1,549,261) $ (18,061,078)
Accumulated deficit (21,792,762) (21,792,762) (21,792,762) (3,842,133)
Cash and cash equivalents 6,282,992 227,597 6,282,992 227,597 6,282,992 17,782 15,018
Working capital $ 5,853,459 $ 5,853,459 $ 5,853,459
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Nature of operations and liquidity risk (Detail Textuals 1) (USD $)
6 Months Ended
Jun. 30, 2013
Going Concern and Nature Of Operations [Abstract]
Net proceeds from issuance of common stock and warrants $ 8,575,000
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Significant accounting policies (Detail Textuals)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Stock Options
Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share 1,140,000 1,020,000
Warrant
Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share 24,985,009 3,360,000
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Reverse acquisition - Net identifiable liabilities (Details) (Exchange Agreement (the "Reverse Acquisition"), DelMar Pharmaceuticals (BC) Ltd., USD $)
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition") | DelMar Pharmaceuticals (BC) Ltd.
Schedule Of Reverse Acquisition [Line Items]
Net liabilities (derivative liability) $ 2,041,680
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Reverse acquisition (Detail Textuals) (USD $)
3 Months Ended 6 Months Ended 14 Months Ended 0 Months Ended 6 Months Ended 1 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jan. 25, 2012
Exchange Agreement (the "Reverse Acquisition")
Stock Options
Jun. 30, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
Common stock
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
Common stock
Stock Options
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
United States Residents
Common stock
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
Canadian Residents
Common stock
Schedule Of Reverse Acquisition [Line Items]
Number of shares issued and outstanding in exchange for transfer to Exchangeco 8,729,583 13,070,000 4,340,417 8,729,583
Number of common stock called by warrants 3,360,000
Number of common stock purchased for options 1,020,000 1,020,000
Percentage of outstanding shares of common stock 80.10%
Fair value of the shares issued $ 1,690,004
Recapitalization loss on reverse acquisition          $ 3,731,684 $ 3,731,684
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Valent Technologies LLC agreement (Detail Textuals)
3 Months Ended 6 Months Ended 14 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2013
USD ($)
Jun. 30, 2013
Loan agreement
USD ($)
Jun. 30, 2012
Loan agreement
USD ($)
Jun. 30, 2013
Loan agreement
USD ($)
Jun. 30, 2012
Loan agreement
USD ($)
Feb. 03, 2011
Loan agreement
Valent Technologies, LLC
USD ($)
Feb. 01, 2012
Loan agreement
Valent Technologies, LLC
Warrant
Agreement [Line Items]
Loan amount $ 250,000
Unsecured loan interest bearing rate 3.00%
Loan payable, including accrued interest 268,299 268,299
Accrued interest 18,299 18,299
Interest expense 1,992 1,876 3,947 3,740 33,401 1,992 1,876 3,947 3,740
Number of warrants issued 500,000
Exercise price of warrants (in Canadian dollars per warrant) 0.5
Fair value of the contingent warrants $ 89,432
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Related party transactions (Detail Textuals) (Consulting Agreement, USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Director
Jun. 30, 2012
Director
Stock_Warrant_Unit
Agreements
Jun. 30, 2012
Officer and Director
Jun. 30, 2013
Officer and Director
Related Party Transaction [Line Items]
Monthly payment to officers and directors $ 26,973 $ 36,784
Number of agreements 2
Number of units issued for services and settlement of accounts payable 360,000
Value for units issued for services 180,144
Value for units issued per month 15,012
Total expenses recognized from related party transaction 45,036 90,072
General and administrative expenses from transactions with related party 30,194
Research and development expenses from transactions with related party 59,878
Aggregate cash compensation 11,961 220,704
Cash compensation paid to two directors $ 35,883 $ 71,766
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Related party transactions (Detail Textuals 1) (USD $)
3 Months Ended 6 Months Ended 14 Months Ended 0 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2013
Consulting Agreement
Dec. 31, 2012
Consulting Agreement
Jan. 25, 2012
Valent Technologies, LLC
Jun. 30, 2013
Valent Technologies, LLC
Jun. 30, 2013
Valent Technologies, LLC
Accounts Payable
Related Party Transaction [Line Items]
Aggregate amount owing to two directors and officers included in accounts payable $ 236,462 $ 236,462 $ 236,462 $ 447,777 $ 42,455 $ 133,658
Clinical development costs included in Accounts payable 194,007 314,119
Shares issued for the settlement of accounts payable (in shares) 500,000
Value of shares issued for the settlement of accounts payable 253,050
Loan payable, including accrued interest 268,299
Interest expense 1,992 1,876 3,947 3,740 33,401 18,299
Stock issued in exchange for reduction in royalties 1,150,000 1,150,000
Payments of stock issuance costs 598,000
Director Fees Paid $ 15,000 $ 0
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Related party transactions (Detail Textuals 2) (CAD)
0 Months Ended 6 Months Ended
Feb. 01, 2012
Director
Jun. 30, 2013
Officer and Director [Member]
Related Party Transaction [Line Items]
Number of options granted in equal tranches to director 450,000
Exercise price (in Canadian dollar) 0.5
Shares transferred from DelMar Employee Share Purchase Trust to officers and directors. 1,390,625
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Derivative liability - Summary of derivative liability (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
Jun. 30, 2013
Schedule Of Derivative Liabilities [Roll Forward]
Opening balance $ 121,000 $ 106,146 $ 106,146
Issuance of units 3,681,372 333,356
Dividend Warrant liability acquired on reverse acquisition 2,041,680   
Change in fair value of derivative liability 4,599,201 0 7,142,775 0 (318,502) 6,824,273
Closing balance $ 12,986,827 $ 12,986,827 $ 121,000 $ 12,986,827
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Derivative liability (Detail Textuals)
0 Months Ended 1 Months Ended 3 Months Ended 24 Months Ended 33 Months Ended
May 10, 2012
Stock_Warrant_Unit
Nov. 11, 2011
Stock_Warrant_Unit
Oct. 07, 2011
Stock_Warrant_Unit
Oct. 03, 2011
Stock_Warrant_Unit
Feb. 27, 2012
Stock_Warrant_Unit
Jan. 23, 2012
Stock_Warrant_Unit
Jun. 30, 2012
Dec. 31, 2012
Stock_Warrant_Unit
Dec. 31, 2012
USD ($)
Dec. 31, 2012
CAD
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Number of units issued for services in settlement of accounts payable 50,000 50,000 100,000 500,000 560,000 4,150,000 5,410,000
Cash proceeds for units issued for services in settlement of accounts payable $ 2,671,923 2,705,000
Proceeds of units issued held in escrow 3,000,000
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Derivative liability (Detail Textuals 1) (USD $)
6 Months Ended
Jun. 30, 2013
Stock_Warrant_Unit
Investor Warrants
Derivative [Line Items]
Number of units issued 13,125,002
Units issued, issue price per unit 0.8
Proceeds of units issued $ 10,500,000
Number of common stock consisted in each unit 1
Number of warrant consisted in each unit 1
Term of warrants 5 years
Warrants, redemption price per share 0.001
Minimum closing price per share $ 1.6
Number of consecutive trading days 20 days
Average trading volume of shares per day 50,000
Dividend warrants
Derivative [Line Items]
Warrants, redemption price per share 0.001
Minimum closing price per share $ 2.5
Exercise Price 1.25
Warrants, Redemption Description
Dividend Warrants may be redeemed by the Company upon not less than sixty (60) days nor more than ninety (90) days prior written notice.
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Derivative liability (Detail Textuals 2)
6 Months Ended
Jun. 30, 2013
Warrant
Derivative [Line Items]
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 74.00%
Fair value assumptions risk free rate 0.41%
Fair value assumptions expected term 7 months
Fair value assumptions valuation model simulated probability valuation model
Dividend warrants
Derivative [Line Items]
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 100.00%
Fair value assumptions risk free rate 1.60%
Fair value assumptions expected term 5 years
Fair value assumptions valuation model simulated probability valuation model
Investor Warrants
Derivative [Line Items]
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 100.00%
Fair value assumptions risk free rate 1.60%
Fair value assumptions expected term 5 years
Fair value assumptions valuation model simulated probability valuation model
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Stockholders' deficiency - Options outstanding under Plan (Details) (Stock Options)
1 Months Ended 6 Months Ended
Jun. 15, 2012
CAD
Feb. 29, 2012
CAD
Jun. 30, 2013
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance - December 31, 2012 1,020,000
Granted 90,000 930,000 240,000
Cancelled (120,000)
Balance - June 30, 2013 1,140,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Beginning balance (in Dollars per share) $ 0.48
Granted 0.5 0.5 $ 1.92
Cancelled (in Dollars per share) $ 0.48
Ending balance (in Dollars per share) $ 0.78
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Stockholders' deficiency - Stock options outstanding and exercisable (Details 1) (Stock Options, USD $)
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2013
Zero Point Four Eight [Member]
Jun. 30, 2013
One Point Five Four [Member]
Jun. 30, 2013
Two Point Three Zero [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in Dollars per share) $ 0.48 $ 1.54 $ 2.3
Number of stock options outstanding 1,140,000 1,020,000 900,000 120,000 120,000
Weighted average remaining contractual life (years) 8 years 7 months 2 days 9 years 9 months 9 years 11 months 1 day
Weighted average exercise price (in Dollars per share) $ 0.78 $ 0.48
Number of stock options exercisable 719,917 650,917 59,333 9,667
Exercise price (in Dollars per share) $ 0.59 $ 0.48 $ 1.54 $ 2.3
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Stockholders' deficiency - Stock options valuation assumptions (Details 2) (Stock Options)
0 Months Ended 6 Months Ended
Feb. 01, 2012
Jun. 30, 2013
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend rate 0.00% 0.00%
Volatility 97.30% 84.80%
Risk-free rate 1.25% 1.25%
Term - years 3 years 2 years
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Stockholders' deficiency - Stock-based compensation expense (Details 3) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation expense $ 318,585 $ 71,610 $ 522,930 $ 160,029
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation expense 156,656 50,172 309,136 111,241
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share based compensation expense $ 161,929 $ 21,438 $ 213,794 $ 48,788
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Stockholders' deficiency - Unvested stock options (Details 4) (Stock Options)
1 Months Ended 6 Months Ended
Jun. 15, 2012
CAD
Feb. 29, 2012
CAD
Jun. 30, 2013
USD ($)
Share Based Compensation Arrangement By Share Based Payment Award Stock Options Unvested Number Of Shares [Roll Forward]
Number of options unvested, beginning balance 444,500
Number of options, granted 90,000 930,000 240,000
Number of options, Cancelled (120,000)
Number of options, vested (144,417)
Number of options unvested, ending balance 420,083
Share Based Compensation Arrangement By Share Based Payment Award Stock Options Unvested Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price unvested, begaining balance (in Dollars per share) $ 0.48
Weighted average exercise price unvested, granted (in Dollars per share) 0.5 0.5 $ 1.92
Weighted average exercise price unvested, cancelled (in Dollars per share) $ 0.48
Weighted average exercise price unvested, vested (in Dollars per share) $ 1.17
Weighted average exercise price unvested, ending balance (in Dollars per share) $ 1.06
Share Based Compensation Arrangement By Share Based Payment Award Stock Options Unvested Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average grant date fair value, unvested, beginning balance (in Dollars per share) $ 0.3
Weighted average grant date fair value, unvested, granted (in Dollars per share) $ 1.05
Weighted average grant date fair value, unvested, cancelled (in Dollars per share) $ 0.3
Weighted average grant date fair value, unvested, vested (in Dollars per share) $ 0.66
Weighted average grant date fair value, unvested, ending balance (in Dollars per share) $ 0.61
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Stockholders' deficiency - Warrants (Details 5) (USD $)
6 Months Ended
Jun. 30, 2013
Number Of Warrants [Roll Forward]
Balance - December 31, 2012 950,000
Warrants issued as unit issue costs 5,250,000
Balance - June 31, 2013 6,200,000
Value Of Warrants [Roll Forward]
Balance - December 31, 2012 $ 153,106
Warrants issued as unit issue costs 6,288,594
Balance - June 31, 2013 $ 6,441,700
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Stockholders' deficiency - Summary of outstanding warrants (Details 6)
Jun. 30, 2013
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 24,985,009
CDN $0.50 warrants
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 2,410,000 [1]
Issued as broker warrants
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 105,000 [2]
Issued for patents
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 500,000 [3]
Issued for services
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 345,000 [4]
Investor Warrants
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 13,125,002 [5]
Dividend warrants
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 3,250,007 [6]
Placement Agent
Stockholders Equity Note [Line Items]
Closing balance of warrants outstanding 5,250,000 [7]
[1] All of the warrants expire on January 25, 2014. They are exercisable at $0.96 per warrant until July 25, 2013 and $1.20 per warrant from July 26, 2013 until January 25, 2014. A total of 241,000 warrants are exercisable for no additional consideration.
[2] The Company has issued broker warrants as finder's fees in relation to the issuance of certain of the CDN $0.50 units issued during the years ended December 31, 2011 and 2012. All of the warrants were issued on March 1, 2012 and have an exercise price of CDN $0.50 per warrant. Of the total, 100,000 expire March 1, 2015 and 5,000 expire March 1, 2014.
[3] The Company issued 500,000 warrants to Valent (note 3). The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
[4] The Company has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vested in 12 equal installments over a 12-month period commencing on March 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2015.
[5] The Investor Warrants were issued as part of the Company's $0.80 unit offering. They were issued in tranches on January 25, 2013, January 31, 2013, February 8, 2013, February 21, 2013, February 28, 2013, March 1, 2013, and March 6, 2013 respectively (note 7(b)). They are exercisable at $0.80 per warrant for five years commencing from their respective issue dates.
[6] The Dividend Warrants are exercisable at $1.25 per warrant until January 24, 2018.
[7] The Placement Agent Warrants are exercisable at $0.80 per warrant until March 6, 2018 but can be exercise on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
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Stockholders' deficiency (Detail Textuals) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Jan. 25, 2013
DelMar Pharmaceuticals, Inc
Jan. 25, 2013
DelMar Pharmaceuticals (BC) Ltd.
Jan. 25, 2013
Canadian Residents
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
Jan. 25, 2013
Voting and Exchange Trust Agreement
Stockholders Equity Note [Line Items]
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, issued 1   
Preferred stock, shares outstanding 1   
Preferred stock special voting shares issued 1
Common stock, shares authorized 200,000,000 200,000,000 13,070,000
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares issued (in shares) 31,150,009 13,050,000 3,250,007
Common stock, shares outstanding (in shares) 31,150,009 13,050,000 3,250,007 8,729,583
Number of shares acquired 13,070,000
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Stockholders' deficiency (Detail Textuals 1) (Series of subscription agreements, Accredited investors, USD $)
6 Months Ended
Jun. 30, 2013
WarrantUnit
Series of subscription agreements | Accredited investors
Stockholders Equity Note [Line Items]
Sale of units, price per unit (in dollars per unit) 0.8
Number of units sold under private offering 13,125,002
Proceeds from issuance of private offering $ 10,500,000
Number of share of common stock consist in each offering unit 1
Number of warrant consist in each offering unit 1
Term of warrants 5 years
Exercise price of warrant 0.8
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Stockholders' deficiency (Detail Textuals 2) (USD $)
6 Months Ended
Jun. 30, 2013
Stockholders Equity Note [Line Items]
Net proceeds from issuance of common stock and warrants $ 8,575,000
Charles Vista, LLC
Stockholders Equity Note [Line Items]
Cash fee to placement agent 1,050,000
Cash fee to placement agent gross proceeds percentage 10.00%
Non-accountable expense allowance 315,000
Non-accountable expense allowance gross proceeds percentage 3.00%
Period of consulting services 1 year
Consulting fees 60,000
Unit issue and closings costs 500,000
Net proceeds from issuance of common stock and warrants $ 8,575,000
Term of warrants 5 years
Number of common stock called by warrants 5,250,000
Percentage of shares of common stock called by warrants 20.00%
Exercise price of warrant 0.8
Specified percentage of amount of funds solicited by placement agent equals to solicitation fee 5.00%
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Stockholders' deficiency (Detail Textuals 3) (USD $)
3 Months Ended 6 Months Ended 14 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Equity [Abstract]
Stock issued to Valent in exchange reduction in royalties 1,150,000
Deferred Cost $ 90,771 $ 90,771      
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Stockholders' deficiency (Detail Textuals 4) (USD $)
6 Months Ended
Jun. 30, 2013
May 01, 2012
Stockholders Equity Note [Line Items]
Total share-based payment expense recognized in general and administrative expense $ 997,557
Consulting agreement
Stockholders Equity Note [Line Items]
Stock agreed to issue a month pursuant to consulting agreement 20,000
Stock issued pursuant to consulting agreement 100,000
Expenses on shares issued to consulting agreement 142,557
Additional stock issued pursuant to consulting agreement 475,000
Additional expenses on shares issued to consulting agreement 855,000
Total share-based payment expense recognized in general and administrative expense $ 997,557
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Stockholders' deficiency (Detail Textuals 5)
6 Months Ended 1 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2013
Jun. 15, 2012
Stock Options
CAD
Feb. 29, 2012
Stock Options
CAD
Jun. 30, 2013
Stock Options
USD ($)
Directors
Jan. 25, 2012
Stock Options
Exchange Agreement [Member]
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Threshold percentage of share capital on fully diluted basis for common stock authorized to issue 7.50%
Number of options, granted 90,000 930,000 240,000
Expiry period from the date of grant 10 years 10 years
Weighted average exercise price unvested, granted (in Candian dollars per share) 0.5 0.5 $ 1.92
Number of options vested in equal monthly installments over one year 450,000
Vesting period of options, one 1 year
Number of options vested in equal monthly installments over three years 570,000
Vesting period of options 3 years
Number of options granted in equal tranches to director 450,000
Number of stock options became exercisable into shares of common stock due to Reverse Acquisition 1,020,000
Number of directors 3
Percentage of equity securities deemed granted to principle founders of entity on pro rata basis as per ownership 66 2/3
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Stockholders' deficiency (Detail Textuals 6) (USD $)
6 Months Ended
Jun. 30, 2013
Equity [Abstract]
Aggregate intrinsic value of stock options outstanding $ 1,529,340
Aggregate intrinsic value of stock options exercisable 1,090,706
Unrecognized compensation expense $ 287,072
Unrecognized compensation expense, period of recognition 18 months
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Stockholders' deficiency (Detail textuals 7) (Placement Agent Warrants, USD $)
6 Months Ended
Jun. 30, 2013
Placement Agent Warrants
Stockholders Equity Note [Line Items]
Number of placement agent warrants issued 5,250,000
Non cash issue costs allocated to common stock $ 4,087,586
Non cash issue costs allocated to derivative liability $ 2,201,008
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 104.00%
Fair value assumptions risk free rate 1.00%
Fair value assumptions expected term 5 years
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Stockholders' deficiency (Detail Textuals 8)
Jun. 30, 2013
CDN $0.50 warrants
Jun. 30, 2013
CDN $0.50 warrants
Until July 25th 2013
Jun. 30, 2013
CDN $0.50 warrants
From July 26th 2013 Until January 25th 2014
Dec. 31, 2012
Issued as broker warrants
Dec. 31, 2011
Issued as broker warrants
Jun. 30, 2013
Issued as broker warrants
March 1st 2015
Jun. 30, 2013
Issued as broker warrants
March 1st 2014
Jun. 30, 2013
Issued for patents
Valent Technologies, LLC
Jun. 30, 2013
Issued for services
Installments
Jun. 30, 2013
Investor Warrants
Jun. 30, 2013
Dividend warrants
Until January 24th 2018
Jun. 30, 2013
Placement Agent
Until March 6th 2018
Stockholders Equity Note [Line Items]
Exercise price of warrant 0.96 1.2 1.25 0.8
Number of warrants exercisable 241,000
Units issued, issue price per unit 0.5 0.5 0.8
Exercise price of warrants 0.5 0.5 0.5 0.8
Number of warrants expired 100,000 5,000
Number of warrants issued 500,000 345,000
Number of installments for vesting of warrants 12
Vesting period of warrants 12 months
Exercise period of warrants 5 years
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Financial instruments - Liabilities under the fair value hierarchy (Details) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability $ 12,986,827 $ 121,000 $ 106,146
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability      
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability      
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability $ 12,986,827 $ 121,000
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Subsequent events (Detail Textuals)
6 Months Ended 6 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2013
Stock Options
USD ($)
Dec. 31, 2012
Stock Options
USD ($)
Jun. 30, 2013
Subsequent events
CAD
Jun. 30, 2013
Subsequent events
Placement Agent
Subsequent Event [Line Items]
Exercise price $ 0.78 $ 0.48 0.5
Number of shares issued and outstanding in exchange for transfer to Exchangeco 8,729,583 100,000
Number of common stock called by warrants 186,000 123,810
Number of warrants exercised on a cashless shares of common stock 6,200,000 950,000 200,000
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