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Document and Entity Information
9 Months Ended
Sep. 30, 2013
Nov. 08, 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 ' 23,995,236
Document Type '10-Q '
Document Period End Date Sep 30, 2013 '
Amendment Flag 'false '
Document Fiscal Year Focus '2013 '
Document Fiscal Period Focus 'Q3 '
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Consolidated Condensed Interim Balance Sheets (Unaudited) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Current assets ' '
Cash and cash equivalents $ 5,170,812 $ 17,782
Taxes and other receivables 11,755 45,499
Prepaid expenses 210,469 28,778
Deferred costs '   90,771
Assets, total 5,393,036 182,830
Current liabilities ' '
Accounts payable and accrued liabilities 210,608 677,615
Related party payables 217,151 447,777
Current liabilities, total 427,759 1,125,392
Loan payable to Valent 270,328 264,352
Stock option liability 208,776 '  
Derivative liability 4,790,468 121,000
Liabilities, total 5,697,331 1,510,744
Stockholders' Deficiency ' '
Preferred stock Authorized 5,000,000 shares, $0.001 par value 1 share outstanding as of September 30, 2013(December 31, 2012 - nil) '   '  
Common stock Authorized 200,000,000 shares, $0.001 par value Issued and outstanding 31,519,819 at September 30, 2013 (December 31, 2012 - 13,050,000) 31,520 13,050
Additional paid-in capital 8,439,437 2,326,885
Warrants 6,202,100 153,106
Deficit accumulated during the development stage (14,998,530) (3,842,133)
Accumulated other comprehensive income 21,178 21,178
Stockholders' equity, total (304,295) (1,327,914)
Liabilities and equity, total $ 5,393,036 $ 182,830
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Consolidated Condensed Interim Balance Sheets (Unaudited) (Parentheticals) (USD $)
Sep. 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) 31,519,819 13,050,000
Common stock, shares outstanding (in shares) 31,519,819 13,050,000
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Consolidated Condensed Interim Statement of Loss and Comprehensive Loss (Unaudited) (USD $)
3 Months Ended 9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Expenses ' ' ' ' '
Research and development $ 560,235 $ 229,488 $ 1,776,594 $ 1,217,021 $ 4,419,880
General and administrative 741,368 218,732 3,316,125 781,324 4,780,130
Operating expenses, total 1,301,603 448,220 5,092,719 1,998,345 9,200,010
Other loss (income) ' ' ' ' '
Change in fair value of unexercised warrants (8,094,339) '   (951,564) '   (1,270,066)
Issuance of shares to Valent for future royalty reduction '   '   598,000 '   598,000
Derivative issue costs '   '   2,713,220 '   2,737,962
Foreign exchange (2,834) (22,295) (31,767) (26,891) (32,619)
Interest expense 2,029 1,900 5,976 5,630 35,430
Interest income (691) '   (1,871) '   (1,871)
Nonoperating Income (Expense) (8,095,835) (20,395) 2,331,994 (21,261) 2,066,836
Net (income) loss for the period (6,794,232) 427,825 7,424,713 1,977,084 11,266,846
Basic income (loss) per share $ 0.22 $ (0.03) $ (0.26) $ (0.15) '  
Diluted income (loss) per share $ 0.02 $ (0.03) $ (0.26) $ (0.15) '  
Basic weighted average number of shares 31,430,566 12,969,783 28,977,156 13,287,835 '  
Diluted weighted average number of shares 41,671,789 12,969,783 28,977,156 13,287,835 '  
Comprehensive (income) loss ' ' ' ' '
Net loss (6,794,232) 427,825 7,424,713 1,977,084 11,266,846
Recapitalization loss on reverse acquisition '   '   '   '   3,731,684
Net loss and recapitalization loss on reverse acquisition, total (6,794,232) 427,825 7,424,713 1,977,084 14,998,530
Other comprehensive loss (income) ' ' ' ' '
Translation to US dollar presentation currency '   24,982 '   40,639 (21,178)
Comprehensive (income) loss $ (6,794,232) $ 452,807 $ 7,424,713 $ 2,017,723 $ 14,977,352
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Statements of Changes in Stockholders' Equity (Unaudited) (USD $)
Common stock
Additional paid-in capital
Accumulated other comprehensive income
Warrants
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 ' ' ' ' '
Exercise of placement agent warrants (note 7) 124 239,476 '   (239,600) '   '  
Exercise of placement agent warrants (note 7) (in shares) [1],[2] 123,810 ' ' ' ' '
Exercise of CDN $0.50 unit warrants (notes 6 and 7) 206 225,834 '   '   '   226,040
Exercise of CDN $0.50 unit warrants (notes 6 and 7) (in shares) [1],[2] 206,000 ' ' ' ' '
Shares issued for services (note 7(d)) 615 1,042,942 '   '   '   1,043,557
Shares issued for services (note 7(d)) (in shares) [1],[2] 615,000 ' ' ' ' '
Stock-based compensation (note 7) '   '   554,030 '   '   554,030
Comprehensive loss for the period ' ' ' ' ' '  
Loss for the period '   '   '   '   (7,424,713) (7,424,713)
Balance at Sep. 30, 2013 $ 31,520 $ 8,439,437 $ 21,178 $ 6,202,100 $ (14,998,530) $ (304,295)
Balance (in shares) at Sep. 30, 2013 31,519,819 [1],[2] ' ' ' ' 31,519,819
[1] (i) The issued and outstanding common shares include 7,629,583 shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares (notes 3 and 7)
[2] (ii) 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 (Unaudited) (Parentheticals)
9 Months Ended
Sep. 30, 2013
Number of shares issued and outstanding in exchange for transfer to Exchangeco 8,729,583
CDN '
Issuance of units/warrants at net of cash issue costs 0.5
Issuance of units '
Issuance of units/warrants at net of cash issue costs 0.8
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 $)
9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Cash flows from operating activities ' ' '
Loss for the period $ (7,424,713) $ (1,977,084) $ (11,266,846)
Items not affecting cash ' ' '
Accrued interest 5,976 5,630 20,328
Change in fair value of unexercised warrants (951,564) '   (1,270,066)
Issuance of shares 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 '   135,108 275,284
Warrants issued for patents '   '   89,432
Warrants issued for services 108,518 49,379 157,897
Share-based compensation 1,806,363 1,028,879 3,063,834
Prototype drug product '   '   250,000
Net income (loss) after adjustments of non-cash items (3,656,412) (758,088) (5,881,129)
Changes in non-cash working capital ' ' '
Taxes and other receivables 33,744 25,926 (11,755)
Prepaid expenses 166,189 31,149 225,971
Accounts payable and accrued liabilities (467,007) 97,739 468,530
Related party payables (230,626) 34,284 217,151
Changes in non-cash working capital total (830,078) 126,800 447,955
Net cash flows from operating activities (4,486,490) (631,288) (5,433,174)
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 5,153,030 40,282 5,170,812
Cash and cash equivalents - beginning of period 17,782 15,018 '  
Cash and cash equivalents - end of period 5,170,812 55,300 5,170,812
Supplementary information ' ' '
Issuance of shares for the settlement of accounts payable (note 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
Cashless exercise of Placement Agent Warrants (note 7) 239,600 '   239,600
Exercise of CDN $0.50 Warrants for no additional consideration (note 6) 226,040 '   226,040
Deferred costs $ 90,771 '   '  
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Consolidated Condensed Interim Statement of Cash Flows (Unaudited) (Parentheticals) (Member Units [Member])
9 Months Ended
Sep. 30, 2013
Member Units [Member] '
Issuance of units/warrants at net of cash issue costs 0.5
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Nature of operations and liquidity risk
9 Months Ended
Sep. 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.  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).
 
Pursuant to the Reverse Acquisition, 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. 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 nine months ended September 30, 2013, the Company reported a net loss of $7,424,713 and an accumulated deficit of $14,998,530 at that date.  As at September 30, 2013, the Company has cash and cash equivalents of $5,170,812 and a working capital balance of $4,965,277. 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 18 months.
 
There could be material differences in our cost estimates or there can be unforeseen events, problems or delays 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
9 Months Ended
Sep. 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 various 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 interim 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 September 30, 2013 consolidated condensed interim balance sheets, the consolidated condensed interim statements of loss and comprehensive loss for the three and nine months ended September 30, 2013 and 2012, consolidated condensed interim statement of changes in stockholders’ deficiency,  and consolidated condensed cash flows for the nine months ended September 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 interim 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 September 30, 2013 and results of its operations for the three and nine months ended September 30, 2013 and 2012, and its cash flows for the nine months ended September 30, 2013 and 2012. The results for the three and nine months ended September 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 (notes 6 and 8).
 
Loss per share
 
Loss per share is calculated based on the weighted average number of common shares outstanding.  For the nine months ended September 30, 2013 and for the three and nine months ended September 30, 2012 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants and stock options are anti-dilutive.  At September 30, 2013, potential common shares of 24,879,009 (September 30, 2012 – 3,360,000) relating to warrants and 3,240,000 (September 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.
 
For the three months ended September 30, 2013 diluted income per share has also been presented.  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.
 
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 September 30, 2013 through the date these financial statements were issued.
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Reverse acquisition
9 Months Ended
Sep. 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 September 30, 2013.
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Valent Technologies LLC agreement
9 Months Ended
Sep. 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 September 30, 2013 is $270,328 including accrued interest of $20,328. The Company has accrued interest of $2,029 for the three months ended September 30, 2013 (September 30, 2012 - $1,900) and has accrued interest of $5,976 for the nine months ended September 30, 2013 (September 30, 2012 - $5,630). 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 September 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
9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract] '
Related party transactions '
5  
Related party transactions
 
During the nine months ended September 30, 2013
 
Pursuant to consulting agreements with the Company’s officers and directors the Company pays a total of $36,784 per month in cash compensation to its officers and directors. Pursuant to these agreements the Company recognized a total of $331,056 in compensation expense for the nine months ended September 30, 2013.
 
Included in accounts payable at September 30, 2013 is an aggregate amount owing of $73,144 (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 September 30, 2013 is an amount of $144,007 (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 $270,328 due to Valent at September 30, 2013 including accrued aggregate interest of $20,328 to September 30, 2013 (note 4). 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 nine months ended September 30, 2013.
 
The Company paid $26,583 (September 30, 2012 – $0) in directors’ fees during the nine months ended September 30, 2013.
 
 
During the nine months ended September 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 nine months ended September 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 $135,108 respectively in services for the three and nine months ended September 30, 2012 (note 6). Of the $135,108, $46,060 has been recognized as general and administrative and $89,048 has been recognized as research and development.
 
Included in the monthly amount of $26,973 under the consulting agreements the Company paid its officers and directors cash compensation totaling an aggregate $11,494 per month. The Company has paid $34,482 and $103,446 respectively for the three and nine months ended September 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
9 Months Ended
Sep. 30, 2013
Derivative liability [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 allow the option to 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.
 
 
During the nine months ended September 30, 2013, 206,000 warrants were exercised for no additional consideration for 206,000 shares of common stock.  As a result, $226,040 of the derivative liability has been reclassified to equity.  The warrants that have been exercised were revalued at their exercise date and then the reclassification to equity was recorded.
 
The remaining warrants issued with the units have been re-valued at September 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 80%, risk free rate - 0.37% and a term of four 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 September 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 78%, risk free rate - 1.3% and a term of approximately 4.5 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 ninety (60) days nor more than ninety (90) days prior written notice.
 
The Dividend Warrants have been measured at fair value at September 30, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility - 78%, risk free rate - 1.3% and a term of approximately 4.25 years.
 
Warrants issued for services
 
During the nine months ended September 30, 2013 the Company issued 300,000 warrants for services.  The warrants were issued on September 12, 2013 and are exercisable on a cashless basis at an exercise price of $1.76 for five years.  As of September 30, 2013 75% of the warrants have vested.    As a result, at September 30, 2103 the Company has recognized $108,518 in the consolidated condensed interim statement of operations and $15,502 as prepaid expenses.
 
The warrants have been measured at fair value at their issue date of September 12, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility -96%, risk free rate - 1.9% and a term of approximately five years.
 
 
 
The Company’s derivative liability is summarized as follows:
 
   
September 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   - 
Warrants issued for services
  124,020   - 
Change in fair value of unexercised warrants
  (951,564)  (318,502)
Reclassification to equity upon exercise of warrants
  (226,040)  - 
          
Closing balance
  4,790,468   121,000 
 
  
 
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Stockholders' deficiency
9 Months Ended
Sep. 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 September 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 September 30, 2013 - 31,519,819 (December 31, 2012 - 13,050,000).  The issued and outstanding common shares include 7,629,583 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.  Pursuant to the cashless exercise provision in the Placement Agent Warrants, if the warrants are exercised on a cashless basis, the number of shares the Company will issue to the holder will be dependent on the closing price of the common stock for the immediately preceding 20 trading days.
 
The Company will pay a warrant solicitation fee of 5% of the amount of funds solicited by the 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 nine months ended September 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 September 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 nine months ended September 30, 2013. The shares have been valued using the fair value of the Company shares based on the purchase price under recent shares issuance by the Company or the closing price of the common stock on the date the shares for services were issued.  A total of $142,557 in expense has been recognized for these shares for the nine months ended September 30, 2013.
 
In addition to the shares issued under the May 1, 2012 consulting agreement, during the nine months ended September 30, 2013 the Company also issued 515,000 shares of common stock for services resulting in the recognition of $901,000 in expense for a total of $1,043,557.
 
The total expense of $1,043,557 in addition to the stock option expense of $762,806 and the warrants issued for services expense of  $108,518 (note 6) results in a total share-based payment expense of $1,914,881 for the nine months ended September 30, 2013 (September 30, 2012 - $1,213,366).  This total expense has been recognized as to $405,211 and $1,509,670 for research and development, and general and administrative respectively for the nine months ended September 30, 2013 and $96,074 and $372,319 for research and development, and general and administrative respectively  for the three months ended September 30, 2013.  This prior period expense of $1,213,366 has been recognized as to $788,619 and $424,747 for research and development, and general and administrative respectively for the nine months ended September 30, 2012 and $65,207 and $57,442 for research and development, and general and administrative respectively  for the three months ended September 30, 2012.
 
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 September 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
    2,340,000       1.15  
Cancelled
    (120,000 )     0.48  
Balance – September 30, 2013
    3,240,000       0.97  
 
The following table summarizes stock options currently outstanding and exercisable at September 30, 2013:
 
Exercise price
$
   
Number
outstanding at
September 30,
2013
   
Weighted
average
remaining
contractual
life
(years)
   
Weighted
average
exercise
price
$
   
Number
exercisable
at
September 30,
2013
   
Exercise
price
$
 
                                 
  0.49       900,000       8.34       0.49       688,417       0.48  
  1.05       2,040,000       9.88       1.05       193,333       1.05  
  1.54       180,000       9.50       1.54       179,000       1.54  
  2.30       120,000       9.67       2.30       39,667       2.30  
          3,240,000               0.97       1,100,417       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:
 
   
September 30,
2013
   
Grant
Date
 
             
Dividend rate
    0 %     0 %
Volatility
    84.8 %    
84.8% to 97.3
%
Risk-free rate
    1.0 %    
1.0% to 1.25
%
Term - years
   
1.33 to 2.88
      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:
 
   
Three months ended
September 30,
   
Nine months ended
September 30,
 
                         
    $
2013
    $
2012
    $
2013
    $
2012
 
                                 
Research and development
    50,075       34,907       359,211       146,162  
General and administrative
    189,801       12,180       403,595       61,245  
                                 
      239,876       47,087       762,806       207,407  
 
The aggregate intrinsic value of stock options outstanding at September 30, 2013 was $445,230 and the aggregate intrinsic value of stock options exercisable at September 30, 2013 was $340,560. As of September 30, 2013 there was $862,346 in unrecognized compensation expense that will be recognized over the next 2.5 years. 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
    2,340,000       1.15       0.63  
Cancelled
    (120,000 )     0.49       0.30  
Vested
    (524,917 )     1.01       0.56  
                         
Unvested at September 30, 2013
    2,139,583       1.09       0.60  
 
Warrants
 
   
Number of
Warrants
   
Amount
$
 
             
Balance - December 31, 2012
    950,000       153,106  
                 
Warrants issued as unit issue costs (i)
    5,250,000       6,288,594  
Warrants exercised on a cashless basis (ii)
    (200,000 )     (239,600 )
                 
Balance - September 30, 2013
    6,000,000       6,202,100  
 
(i) 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 the costs have been allocated to common stock and derivative liability. The portion allocated to additional paid 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.
 
ii) During the nine months ended September 30, 2013, 200,000 placement agent warrants were exercised on a cashless basis for 123,810 shares of common stock.
 
Certain of the Company’s warrants have been recognized as a derivative liability (note 6). The following table summarizes all of the Company’s outstanding warrants as of September 30, 2013:
 
Description
 
Number
 
       
CDN $0.50 warrants (note 6) (i)
    2,204,000  
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)
    5,050,000  
Issued for services (viii)
    300,000  
         
Closing balance - September 30, 2013
    24,879,009  
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $1.20 per warrant until January 25, 2014. A total of 35,000 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 4). 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 exercised on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
 
viii)  
The warrants are exercisable on a cashless basis at a price of $1.76 per warrant until September 12, 2018.
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Financial instruments
9 Months Ended
Sep. 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:
 
    September 30, 2013 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   4,790,468 
 
 
    December 31, 2012 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   121,000 
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Subsequent events
9 Months Ended
Sep. 30, 2013
Subsequent Events [Abstract] '
Subsequent events '
9  
Subsequent events
 
Commitments
 
Pursuant to a services agreement with an investor relations consultant the Company has agreed to issue up to 440,000 shares of common stock, subject to the Company’s determination, in the Company’s sole discretion, that the consultant has  performed its services satisfactorily under the agreement. Of the 440,000 shares, up to 240,000 shares are issuable in equal monthly installments of 40,000 shares of common stock for the period from October 2013 to March 2014.  An additional 200,000 shares of common stock may be issued at the sole discretion of the Company as a bonus under the agreement.
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Significant accounting policies (Policies)
9 Months Ended
Sep. 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 various 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 interim 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 September 30, 2013 consolidated condensed interim balance sheets, the consolidated condensed interim statements of loss and comprehensive loss for the three and nine months ended September 30, 2013 and 2012, consolidated condensed interim statement of changes in stockholders’ deficiency,  and consolidated condensed cash flows for the nine months ended September 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 interim 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 September 30, 2013 and results of its operations for the three and nine months ended September 30, 2013 and 2012, and its cash flows for the nine months ended September 30, 2013 and 2012. The results for the three and nine months ended September 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 (notes 6 and 8).
Loss per share '
Loss per share
 
Loss per share is calculated based on the weighted average number of common shares outstanding.  For the nine months ended September 30, 2013 and for the three and nine months ended September 30, 2012 diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants and stock options are anti-dilutive.  At September 30, 2013, potential common shares of 24,879,009 (September 30, 2012 – 3,360,000) relating to warrants and 3,240,000 (September 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.
 
For the three months ended September 30, 2013 diluted income per share has also been presented.  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.
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 September 30, 2013 through the date these financial statements were issued.
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Reverse acquisition (Tables)
9 Months Ended
Sep. 30, 2013
Reverse Acquisition [Abstract] '
Schedule of reverse acquisition '
 $  
      
Net liabilities (derivative liability)
  2,041,680  
 
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Derivative liability (Tables)
9 Months Ended
Sep. 30, 2013
Derivative liability [Abstract] '
Schedule of change in derivative liabilities '
 
   
September 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   - 
Warrants issued for services
  124,020   - 
Change in fair value of unexercised warrants
  (951,564)  (318,502)
Reclassification to equity upon exercise of warrants
  (226,040)  - 
          
Closing balance
  4,790,468   121,000 
 
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Stockholders' deficiency (Tables)
9 Months Ended
Sep. 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
  2,340,000   1.15 
Cancelled
  (120,000)  0.48 
Balance – September 30, 2013
  3,240,000   0.97
 
Schedule of stock options currently outstanding and exercisable '
Exercise price
$
  
Number
outstanding at
September 30,
2013
  
Weighted
average
remaining
contractual
life
(years)
  
Weighted
average
exercise
price
$
  
Number
exercisable
at
September 30,
2013
  
Exercise
price
$
 
                 
 0.49   900,000   8.34   0.49   688,417   0.48 
 1.05   2,040,000   9.88   1.05   193,333   1.05 
 1.54   180,000   9.50   1.54   179,000   1.54 
 2.30   120,000   9.67   2.30   39,667   2.30 
     3,240,000       0.97   1,100,417   0.59
 
Schedule of stock options valuation assumptions using a Black-Scholes pricing model '
   
September 30,
2013
  
Grant
Date
 
        
Dividend rate
  0%  0%
Volatility
  84.8% 
84.8% to 97.3%
 
Risk-free rate
  1.0% 
1.0% to 1.25%
 
Term - years
 
1.33 to 2.88
   3.0 
 
 
Schedule of stock-based compensation expense '
 
Three months ended
September 30,
  
Nine months ended
September 30,
 
              
   $
2013
  $
2012
  $
2013
  $
2012
 
                  
Research and development
  50,075   34,907   359,211   146,162 
General and administrative
  189,801   12,180   403,595   61,245 
                  
    239,876   47,087   762,806   207,407 
 
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
  2,340,000   1.15   0.63 
Cancelled
  (120,000)  0.49   0.30 
Vested
  (524,917)  1.01   0.56 
              
Unvested at September 30, 2013
  2,139,583   1.09   0.60 
 
Schedule of warrants '
 
   
Number of
Warrants
  
Amount
$
 
        
Balance - December 31, 2012
  950,000   153,106 
          
Warrants issued as unit issue costs (i)
  5,250,000   6,288,594 
Warrants exercised on a cashless basis (ii)
  (200,000)  (239,600)
          
Balance - September 30, 2013
  6,000,000   6,202,100 
 
(i) 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 the costs have been allocated to common stock and derivative liability. The portion allocated to additional paid 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.
 
ii) During the nine months ended September 30, 2013, 200,000 placement agent warrants were exercised on a cashless basis for 123,810 shares of common stock.
Schedule of outstanding warrants '
Description
 
Number
 
     
CDN $0.50 warrants (note 6) (i)
  2,204,000 
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)
  5,050,000 
Issued for services (viii)
  300,000 
      
Closing balance - September 30, 2013
  24,879,009 
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $1.20 per warrant until January 25, 2014. A total of 35,000 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 4). 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 exercised on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
 
viii)  
The warrants are exercisable on a cashless basis at a price of $1.76 per warrant until September 12, 2018.
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Financial instruments (Tables)
9 Months Ended
Sep. 30, 2013
Derivative liability [Abstract] '
Schedule of derivative liabilities under the fair value hierarchy '
 September 30, 2013 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   4,790,468 
 
 
    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 9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Apr. 06, 2010
Going Concern and Nature Of Operations [Abstract] ' ' ' ' ' ' ' '
Net loss $ (6,794,232) $ 427,825 $ 7,424,713 $ 1,977,084 $ 11,266,846 ' ' '
Accumulated deficit 14,998,530 ' 14,998,530 ' 14,998,530 3,842,133 ' '
Cash and cash equivalents 5,170,812 55,300 5,170,812 55,300 5,170,812 17,782 15,018 '  
Working capital $ 4,965,277 ' $ 4,965,277 ' $ 4,965,277 ' ' '
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Nature of operations and liquidity risk (Detail Textuals 1) (USD $)
9 Months Ended
Sep. 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)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Stock Options ' '
Significant Accounting Policies [Line Items] ' '
Antidilutive securities excluded from computation of earnings per share 3,240,000 1,020,000
Warrants ' '
Significant Accounting Policies [Line Items] ' '
Antidilutive securities excluded from computation of earnings per share 24,879,009 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 9 Months Ended 17 Months Ended 42 Months Ended 0 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2013
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
Stock Options
Sep. 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 ' $ 3,731,684 ' ' ' '
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Valent Technologies LLC agreement (Detail Textuals)
3 Months Ended 9 Months Ended 42 Months Ended 0 Months Ended
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2013
Loan agreement
Valent Technologies, LLC
USD ($)
Feb. 03, 2011
Loan agreement
Valent Technologies, LLC
USD ($)
Feb. 01, 2012
Loan agreement
Valent Technologies, LLC
Warrants
Agreement [Line Items] ' ' ' ' ' ' ' '
Loan amount ' ' ' ' ' ' $ 250,000 '
Unsecured loan interest bearing rate ' ' ' ' ' ' 3.00% '
Loan payable, including accrued interest ' ' ' ' ' 270,328 ' '
Accrued interest ' ' ' ' ' 20,328 ' '
Interest expense 2,029 1,900 5,976 5,630 35,430 ' ' '
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 ) (USD $)
3 Months Ended 9 Months Ended 42 Months Ended 0 Months Ended 17 Months Ended 9 Months Ended 3 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Consulting Agreement
Dec. 31, 2012
Consulting Agreement
Jan. 25, 2013
Valent Technologies, LLC
Sep. 30, 2013
Valent Technologies, LLC
Sep. 30, 2013
Valent Technologies, LLC
Accounts Payable
Sep. 30, 2013
Officer and Director
Sep. 30, 2012
Officer and Director
Consulting Agreement
Related Party Transaction [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' '
Aggregate amount owing to two directors and officers included in accounts payable $ 217,151 ' $ 217,151 ' $ 217,151 $ 447,777 $ 73,144 $ 133,658 ' ' ' ' '
Clinical development costs included in Accounts payable ' ' ' ' ' ' 144,007 314,119 ' ' ' ' '
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 ' ' ' ' ' ' ' ' ' ' 270,328 ' '
Interest expense 2,029 1,900 5,976 5,630 35,430 ' ' ' ' 20,328 ' ' '
Stock issued in exchange for reduction in royalties ' ' 1,150,000 1,150,000 ' ' ' ' 1,150,000 ' ' ' '
Payments of stock issuance costs ' ' ' 598,000 ' ' ' ' ' ' ' ' '
Director Fees Paid ' ' 26,583 0 ' ' ' ' ' ' ' ' '
Monthly payment to officers and directors ' ' ' ' ' ' ' ' ' ' ' 36,784 26,973
Aggregate cash compensation ' ' ' ' ' ' ' ' ' ' ' $ 331,056 $ 11,494
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Related party transactions (Detail Textuals 1) (USD $)
3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Director
Consulting Agreement
Sep. 30, 2012
Director
Consulting Agreement
Agreements
Stock_Warrant_Unit
Sep. 30, 2013
Officer and Director
Sep. 30, 2012
Officer and Director
Consulting Agreement
Sep. 30, 2013
Officer and Director
Consulting Agreement
Related Party Transaction [Line Items] ' ' ' ' '
Monthly payment to officers and directors ' $ 26,973 $ 36,784 $ 26,973 '
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 45,036 135,108 ' ' '
General and administrative expenses from transactions with related party ' 46,060 ' ' '
Research and development expenses from transactions with related party ' 89,048 ' ' '
Aggregate cash compensation ' ' 331,056 11,494 '
Cash compensation paid to two directors ' ' ' $ 34,482 $ 103,446
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Related party transactions (Detail Textuals 2) (USD $)
9 Months Ended 0 Months Ended 9 Months Ended
Sep. 30, 2013
Feb. 01, 2012
Director
Sep. 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) $ 1.15 $ 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 9 Months Ended 12 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Sep. 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 ' '   '
Warrants issued for services ' ' 124,020 ' '   '
Change in fair value of unexercised warrants (8,094,339) '   (951,564) '   (318,502) (1,270,066)
Reclassification to equity upon exercise of warrants ' ' 226,040 ' ' '
Closing balance $ 4,790,468 ' $ 4,790,468 ' $ 121,000 $ 4,790,468
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Derivative liability (Detail Textuals)
0 Months Ended 1 Months Ended 0 Months Ended 9 Months Ended 24 Months Ended 33 Months Ended
May 10, 2012
Stock_Warrant_Unit
Oct. 03, 2011
Stock_Warrant_Unit
Oct. 07, 2011
Stock_Warrant_Unit
Feb. 27, 2012
Stock_Warrant_Unit
Jan. 23, 2012
Stock_Warrant_Unit
Nov. 11, 2011
Stock_Warrant_Unit
Sep. 30, 2013
USD ($)
Dec. 31, 2012
Stock_Warrant_Unit
Dec. 31, 2012
USD ($)
Dec. 31, 2012
CAD
Derivative liability [Abstract] ' ' ' ' ' ' ' ' ' '
Number of units issued for services in settlement of accounts payable 50,000 500,000 100,000 560,000 4,150,000 50,000 ' 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 ' ' '
Common stock shares issued on exercise of warrants ' ' ' ' ' ' 206,000 ' ' '
Reclassification to equity upon exercise of warrants ' ' ' ' ' ' $ 226,040 ' ' '
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Derivative liability (Detail Textuals 1) (USD $)
9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Derivative [Line Items] ' ' '
Warrants issued for services $ 108,518 $ 49,379 $ 157,897
Prepaid expenses (166,189) (31,149) (225,971)
Investor Warrants ' ' '
Derivative [Line Items] ' ' '
Number of units issued 13,125,002 ' '
Exercise of CDN $0.50 unit warrants 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 ' 1.25
Warrants, Redemption Description 'Dividend Warrants may be redeemed by the Company upon not less than ninety (60) days nor more than ninety (90) days prior written notice. ' '
Warrants Issued for Services ' ' '
Derivative [Line Items] ' ' '
Number of units issued 300,000 ' '
Exercise Price 1.76 ' 1.76
Rate of warrants vested 75.00% ' '
Warrants issued for services 108,518 ' '
Prepaid expenses $ 15,502 ' '
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Derivative liability (Detail Textuals 2)
9 Months Ended
Sep. 30, 2013
Warrants '
Derivative [Line Items] '
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 80.00%
Fair value assumptions risk free rate 0.37%
Fair value assumptions expected term '4 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 78.00%
Fair value assumptions risk free rate 1.30%
Fair value assumptions expected term '4 years 3 months
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 78.00%
Fair value assumptions risk free rate 1.30%
Fair value assumptions expected term '4 years 6 months
Fair value assumptions valuation model 'simulated probability valuation model
Warrants Issued for Services '
Derivative [Line Items] '
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 96.00%
Fair value assumptions risk free rate 1.90%
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)
9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
Sep. 15, 2012
Stock Options
CAD
Feb. 29, 2012
Stock Options
CAD
Sep. 30, 2013
Stock Options
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] ' ' ' '
Balance - December 31, 2012 1,020,000 ' ' 1,020,000
Granted ' 90,000 930,000 2,340,000
Cancelled (120,000) ' ' (120,000)
Balance - September 30, 2013 3,240,000 ' ' 3,240,000
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 ' ' $ 0.48
Granted $ 1.15 0.5 0.5 $ 1.15
Cancelled (in Dollars per share) $ 0.48 ' ' $ 0.48
Ending balance (in Dollars per share) $ 0.97 ' ' $ 0.97
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Stockholders' deficiency - Stock options outstanding and exercisable (Details 1) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Stock Options
Dec. 31, 2012
Stock Options
Sep. 30, 2013
Stock Options
Zero Point Four Nine [Member]
Sep. 30, 2013
Stock Options
One point zero five [Member]
Sep. 30, 2013
Stock Options
One Point Five Four [Member]
Sep. 30, 2013
Stock Options
Two Point Three Zero [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' ' ' ' ' '
Exercise price (in Dollars per share) ' ' ' ' $ 0.49 $ 1.05 $ 1.54 $ 2.3
Number of stock options outstanding 3,240,000 1,020,000 3,240,000 1,020,000 900,000 2,040,000 180,000 120,000
Weighted average remaining contractual life (years) ' ' ' ' '8 years 4 months 2 days '9 years 10 months 17 days '9 years 6 months '9 years 8 months 1 day
Weighted average exercise price (in Dollars per share) $ 0.97 $ 0.48 $ 0.97 $ 0.48 $ 0.49 $ 1.05 $ 1.54 $ 2.3
Number of stock options exercisable ' ' 1,100,417 ' 688,417 193,333 179,000 39,667
Exercise price (in Dollars per share) ' ' $ 0.59 ' $ 0.48 $ 1.05 $ 1.54 $ 2.3
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Stockholders' deficiency - Stock options valuation assumptions (Details 2) (Stock Options)
0 Months Ended 9 Months Ended
Feb. 01, 2012
Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Dividend rate 0.00% 0.00%
Volatility ' 84.80%
Risk-free rate ' 1.00%
Term - years '3 years '
Minimum [Member] ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Volatility 84.80% '
Risk-free rate 1.00% '
Term - years ' '1 year 3 months 29 days
Maximum [Member] ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Volatility 97.30% '
Risk-free rate 1.25% '
Term - years ' '2 years 10 months 17 days
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Stockholders' deficiency - Stock-based compensation expense (Details 3) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' '
Allocated share based compensation expense $ 239,876 $ 47,087 $ 762,806 $ 207,407
Research and development ' ' ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' '
Allocated share based compensation expense 50,075 34,907 359,211 146,162
General and administrative ' ' ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' '
Allocated share based compensation expense $ 189,801 $ 12,180 $ 403,595 $ 61,245
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Stockholders' deficiency - Unvested stock options (Details 4)
9 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
Sep. 15, 2012
Stock Options
CAD
Feb. 29, 2012
Stock Options
CAD
Sep. 30, 2013
Stock Options
USD ($)
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 ' ' 444,500
Number of options, granted ' 90,000 930,000 2,340,000
Number of options, Cancelled (120,000) ' ' (120,000)
Number of options, vested ' ' ' 524,917
Number of options unvested, ending balance 2,139,583 ' ' 2,139,583
Share Based Compensation Arrangement By Share Based Payment Award Stock Options Unvested Weighted Average Exercise Price [Roll Forward] ' ' ' '
Weighted average exercise price unvested, beginning balance (in Dollars per share) $ 0.48 ' ' $ 0.48
Weighted average exercise price unvested, granted (in Dollars per share) $ 1.15 0.5 0.5 $ 1.15
Weighted average exercise price unvested, cancelled (in Dollars per share) $ 0.48 ' ' $ 0.48
Weighted average exercise price unvested, vested (in Dollars per share) ' ' ' $ 1.01
Weighted average exercise price unvested, ending balance (in Dollars per share) $ 1.09 ' ' $ 1.09
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 ' ' $ 0.3
Weighted average grant date fair value, unvested, granted (in Dollars per share) ' ' ' $ 0.63
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) ' ' ' $ 0.56
Weighted average grant date fair value, unvested, ending balance (in Dollars per share) $ 0.6 ' ' $ 0.6
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Stockholders' deficiency - Warrants (Details 5) (USD $)
9 Months Ended
Sep. 30, 2013
Number Of Warrants [Roll Forward] '
Balance - December 31, 2012 950,000
Warrants issued as unit issue costs 5,250,000 [1]
Warrants exercised on a cashless basis $ (200,000) [2]
Balance - September 30, 2013 6,000,000
Value Of Warrants [Roll Forward] '
Balance - December 31, 2012 153,106
Warrants issued as unit issue costs 6,288,594 [1]
Warrants exercised on a cashless basis (239,600) [2]
Balance - September 30, 2013 $ 6,202,100
[1] 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 the costs have been allocated to common stock and derivative liability. The portion allocated to additional paid 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.
[2] During the nine months ended September 30, 2013, 200,000 placement agent warrants were exercised on a cashless basis for 123,810 shares of common stock.
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Stockholders' deficiency - Summary of outstanding warrants (Details 6)
Sep. 30, 2013
Stockholders Equity Note [Line Items] '
Closing balance of warrants outstanding 24,879,009
CDN $0.50 warrants '
Stockholders Equity Note [Line Items] '
Closing balance of warrants outstanding 2,204,000 [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 5,050,000 [7]
Issued for services '
Stockholders Equity Note [Line Items] '
Closing balance of warrants outstanding 300,000 [8]
[1] All of the warrants expire on January 25, 2014. They are exercisable at $1.20 per warrant until January 25, 2014. A total of 35,000 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 4). 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 exercised on a cashless basis. The Placement Agent Warrants were all issued on March 6, 2013.
[8] The warrants are exercisable on a cashless basis at a price of $1.76 per warrant until September 12, 2018.
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Stockholders' deficiency (Detail Textuals) (USD $)
Sep. 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) 31,519,819 13,050,000 3,250,007 ' ' ' '
Common stock, shares outstanding (in shares) 31,519,819 13,050,000 3,250,007 ' 7,629,583 ' '
Number of shares acquired ' ' ' ' ' 13,070,000 '
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Stockholders' deficiency (Detail Textuals 1) (Series of subscription agreements, Accredited investors, USD $)
9 Months Ended
Sep. 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 $)
9 Months Ended
Sep. 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 0.08
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 $)
9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Equity [Abstract] ' ' '
Stock issued to Valent in exchange reduction in royalties 1,150,000 1,150,000 '
Deferred Cost $ 90,771 '   '  
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Stockholders' deficiency (Detail Textuals 4) (USD $)
3 Months Ended 9 Months Ended 42 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
May 01, 2012
Stockholders Equity Note [Line Items] ' ' ' ' ' '
Stock agreed to issue a month pursuant to consulting agreement ' ' ' ' ' 20,000
Research and Development Expense $ 560,235 $ 229,488 $ 1,776,594 $ 1,217,021 $ 4,419,880 '
General and Administrative Expense 741,368 218,732 3,316,125 781,324 4,780,130 '
Stock Option Expense ' ' 762,806 1,213,366 ' '
Total share-based payment expense recognized in general and administrative expense ' ' 1,043,557 ' ' '
Share-Based Compensation ' ' 1,806,363 1,028,879 3,063,834 '
Warrants issued for services ' ' 108,518 49,379 157,897 '
Consulting agreement ' ' ' ' ' '
Stockholders Equity Note [Line Items] ' ' ' ' ' '
Stock issued pursuant to consulting agreement ' ' 100,000 ' ' '
Expenses on shares issued to consulting agreement ' ' 142,557 ' ' '
Additional stock issued pursuant to consulting agreement ' ' 515,000 ' ' '
Additional expenses on shares issued to consulting agreement ' ' 901,000 ' ' '
Research and Development Expense 96,074 65,207 405,211 788,619 ' '
General and Administrative Expense 372,319 57,442 1,509,670 424,747 ' '
Total share-based payment expense recognized in general and administrative expense ' ' 1,043,557 1,213,366 ' '
Share-Based Compensation ' ' 1,914,881 ' ' '
Warrants issued for services ' ' $ 108,518 ' ' '
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Stockholders' deficiency (Detail Textuals 5)
9 Months Ended 1 Months Ended 9 Months Ended 0 Months Ended
Sep. 30, 2013
USD ($)
Sep. 15, 2012
Stock Options
CAD
Feb. 29, 2012
Stock Options
CAD
Sep. 30, 2013
Stock Options
USD ($)
Directors
Jan. 25, 2013
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 2,340,000 '
Expiry period from the date of grant ' '10 years '10 years ' '
Weighted average exercise price unvested, granted (in Candian dollars per share) $ 1.15 0.5 0.5 $ 1.15 '
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 $)
9 Months Ended
Sep. 30, 2013
Equity [Abstract] '
Aggregate intrinsic value of stock options outstanding $ 445,230
Aggregate intrinsic value of stock options exercisable 340,560
Unrecognized compensation expense $ 862,346
Unrecognized compensation expense, period of recognition '2 years 6 months
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Stockholders' deficiency (Detail textuals 7) (USD $)
9 Months Ended
Sep. 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
Warrant [Member] '
Stockholders Equity Note [Line Items] '
Number of placement agent warrants issued 200,000
Non cash issue costs allocated to common stock $ 123,810
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Stockholders' deficiency (Detail Textuals 8) (USD $)
9 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
CDN $0.50 warrants
Sep. 30, 2013
CDN $0.50 warrants
Until January 25th 2014
Dec. 31, 2012
Issued as broker warrants
Dec. 31, 2011
Issued as broker warrants
Sep. 30, 2013
Issued as broker warrants
March 1st 2015
Sep. 30, 2013
Issued as broker warrants
March 1st 2014
Sep. 30, 2013
Issued for patents
Valent Technologies, LLC
Sep. 30, 2013
Issued for services
Installments
Sep. 30, 2013
Investor Warrants
Sep. 30, 2013
Dividend Warrants
Until January 24th 2018
Sep. 30, 2013
Placement Agent
Until March 6th 2018
Stockholders Equity Note [Line Items] ' ' ' ' ' ' ' ' ' ' ' '
Exercise price of warrant ' ' 1.2 ' ' ' ' ' 1.76 ' 1.25 0.8
Number of warrants exercisable ' 35,000 ' ' ' ' 5,000 500,000 ' ' ' '
Exercise of CDN $0.50 unit warrants ' ' ' 0.5 0.5 ' ' ' ' 0.8 ' '
Exercise price of warrants '   ' ' $ 0.5 ' ' ' $ 0.5 $ 0.5 $ 0.8 ' '
Number of warrants expired ' ' ' ' ' 100,000 ' ' ' ' ' '
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 $)
Sep. 30, 2013
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] ' ' '
Derivative liability $ 4,790,468 $ 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 $ 4,790,468 $ 121,000 '
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Subsequent events (Detail Textuals)
9 Months Ended 1 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Subsequent events
Stock Options
Subsequent Event [Line Items] ' '
Number of shares issued 8,729,583 440,000
Description of monthly installments shares ' 'Of the 440,000 shares, up to 240,000 shares are issuable in equal monthly installments of 40,000 shares of common stock for the period from October 2013 to March 2014.
Additional shares of common stock ' 200,000
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