´╗┐MIME-Version: 1.0 X-Document-Type: Workbook Content-Type: multipart/related; boundary="----=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a" This document is a Single File Web Page, also known as a Web Archive file. If you are seeing this message, your browser or editor doesn't support Web Archive files. Please download a browser that supports Web Archive, such as Microsoft Internet Explorer. ------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Workbook.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"

This page should be opened with Microsoft Excel XP or newer.

------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet01.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2013
Mar. 07, 2014
Jun. 30, 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 ' 24,432,549 '
Document Type '10-K ' '
Document Period End Date Dec 31, 2013 ' '
Amendment Flag 'false ' '
Document Fiscal Year Focus '2013 ' '
Document Fiscal Period Focus 'FY ' '
Entity Well-known Seasoned Issuer 'No ' '
Entity Public Float ' ' $ 22,444,417
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet02.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Balance Sheets (USD $)
Dec. 31, 2013
Dec. 31, 2012
Current assets ' '
Cash and cash equivalents $ 4,136,803 $ 17,782
Taxes and other receivables 11,062 45,499
Prepaid expenses 170,883 28,778
Deferred costs '   90,771
Assets, total 4,318,748 182,830
Current liabilities ' '
Accounts payable and accrued liabilities 140,457 677,615
Related party payables 109,030 447,777
Current liabilities, total 249,487 1,125,392
Loan payable to Valent 272,372 264,352
Stock option liability 212,561 '  
Derivative liability 4,402,306 121,000
Liabilities, total 5,136,726 1,510,744
Stockholders' Deficiency ' '
Preferred stock Authorized 5,000,000 shares, $0.001 par value 1 share outstanding at December 31, 2013 (December 31, 2012 - nil) '   '  
Common stock Authorized 200,000,000 shares, $0.001 par value 31,534,819 Issued at December 31, 2013 (December 31, 2012 - 13,050,000) 31,535 13,050
Additional paid-in capital 8,791,715 2,326,885
Warrants 6,202,100 153,106
Deficit accumulated during the development stage (15,864,506) (3,842,133)
Accumulated other comprehensive income 21,178 21,178
Stockholders' equity, total (817,978) (1,327,914)
Liabilities and equity, total $ 4,318,748 $ 182,830
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet03.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Balance Sheets (Parentheticals) (USD $)
Dec. 31, 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) 31,534,819 13,050,000
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet04.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Statements of Operations and Comprehensive Loss (USD $)
12 Months Ended 45 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Expenses ' ' ' '
Research and development $ 2,342,654 $ 1,550,490 $ 1,051,139 $ 4,985,940
General and administrative 3,952,307 1,154,604 241,802 5,416,312
Operating expenses, total 6,294,961 2,705,094 1,292,941 10,402,252
Other (income) loss ' ' ' '
Change in fair value of derivative liability (1,324,051) (318,502) '   (1,642,553)
Issuance of common shares to Valent for future royalty reduction 598,000 ' ' 598,000
Derivative issuance costs 2,713,220 24,742 '   2,737,962
Foreign exchange loss (gain) 3,030 (18,492) 18,137 2,178
Interest expense 8,020 7,521 21,933 37,474
Interest income (2,491) '   '   (2,491)
Nonoperating Income (Expense) 1,995,728 (304,731) 40,070 1,730,570
Net loss for the period 8,290,689 2,400,363 1,333,011 12,132,822
Basic and diluted loss per share $ (0.28) $ (0.18) $ (0.16) '  
Weighted average number of shares 29,667,324 13,232,349 8,527,466 '  
Comprehensive loss ' ' ' '
Net loss 8,290,689 2,400,363 1,333,011 12,132,822
Other comprehensive loss (income) ' ' ' '
Translation to US dollar presentation currency ' 21,121 (40,711) (21,178)
Comprehensive loss $ 8,290,689 $ 2,421,484 $ 1,292,300 $ 12,111,644
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet05.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Statements of Changes in Stockholders' Equity (Deficiency) (USD $)
Common stock
Additional paid-in capital
Accumulated other comprehensive income
Subscriptions Receivable/ Warrants
Deficit accumulated during the development stage
Total
Balance at Apr. 06, 2010 '   '   '   '   '   '  
Balance (in shares) at Apr. 06, 2010 '   ' ' ' ' '
Increase (Decrease) in Stockholders' Equity [Roll Forward] ' ' ' ' ' '
Loss for the period ' ' ' ' (108,759) (108,759)
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) 256 31,835 '   '   '   32,091
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) (in shares) 256,250 ' ' ' ' '
Comprehensive income loss for the period '   '   1,588 '   '   1,588
Issuance of founders' shares (note 8(a)) 7,000 (333) '   '   '   6,667
Issuance of founders' shares (note 8(a)) (in shares) 7,000,000 ' ' ' ' '
Issuance of common shares (note 8(c)) 1,000 94,403 '   (28,506) '   66,897
Issuance of common shares (note 8(c)) (in shares) 1,000,000 ' ' ' ' '
Balance at Dec. 31, 2010 8,256 125,905 1,588 (28,506) (108,759) (1,516)
Balance (in shares) at Dec. 31, 2010 8,256,250 ' ' ' ' 8,256,250
Increase (Decrease) in Stockholders' Equity [Roll Forward] ' ' ' ' ' '
Issuance of units net of cash issue costs (note 7 & 8(f)) 400 119,496 '   '   '   119,896
Issuance of units net of cash issue costs (note 7 & 8(f)) (in shares) 400,000 ' ' ' ' '
Loss for the period '   '   '   '   (1,333,011) (1,333,011)
Issuance of units for services (notes 7 and 9) 200 60,101 '   '   '   60,301
Issuance of units for services (notes 7 and 9) (in shares) 200,000 ' ' ' ' '
Issuance of units for settlement of accounts payable (notes 7 and 9) 50 15,025 '   '   '   15,075
Issuance of units for settlement of accounts payable (notes 7 and 9) (in shares) 50,000 ' ' ' ' '
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) 153 94,987 '   '   '   95,140
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) (in shares) 153,125 ' ' ' ' '
Comprehensive income loss for the period '   '   40,711 '   '   40,711
Collection of subscriptions receivable '   '   '   28,506 '   28,506
Issuance of warrants related to share issuance costs of units '   8,333 ' ' ' 8,333
Issuance of warrants related to share issuance costs of units (in shares) '   ' ' ' ' '
Issuance of warrants for patents (notes 4 and 8) '   89,432 '   '   '   89,432
Balance at Dec. 31, 2011 9,059 513,279 42,299 '   (1,441,770) (877,133)
Balance (in shares) at Dec. 31, 2011 9,059,375 ' ' ' ' '
Increase (Decrease) in Stockholders' Equity [Roll Forward] ' ' ' ' ' '
Issuance of units net of cash issue costs (note 7 & 8(f)) 4,400 1,358,172 '   '   '   1,362,572
Issuance of units net of cash issue costs (note 7 & 8(f)) (in shares) 4,400,000 ' ' ' ' '
Shares issued for services (note 7(d)) 140 75,660 '   '   '   75,800
Shares issued for services (note 7(d)) (in shares) 140,000 ' ' ' ' '
Stock-based compensation (note 8) '   272,594 '   '   '   272,594
Loss for the period '   '   '   '   (2,400,363) (2,400,363)
Issuance of units for services (notes 7 and 9) 360 116,915 '   '   '   117,275
Issuance of units for services (notes 7 and 9) (in shares) 360,000 ' ' ' ' '
Units cancelled (note 7) (3,000) (938,813) '   '   '   (941,813)
Units cancelled (note 7) (in shares) (3,000,000) ' ' ' ' '
Reclassification from additional paid-in capital to warrants upon the issuance of warrants(note 8) '   (103,727) '   103,727 '   '  
Issuance of warrants for services (notes 8) '   '   '   49,379 '   49,379
Issuance of units for settlement of accounts payable (notes 7 and 9) 500 252,550 '   '   '   253,050
Issuance of units for settlement of accounts payable (notes 7 and 9) (in shares) 500,000 ' ' ' ' '
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) 1,591 780,255 '   '   '   781,846
Shares issued from Del Mar Employee Share Purchase Trust for services - net (note 8(b)) (in shares) 1,590,625 ' ' ' ' '
Comprehensive income loss for the period '   '   (21,121) '   '   (21,121)
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 ' ' ' ' 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) 3,250,007 ' ' ' ' '
Issuance of units net of cash issue costs (note 7 & 8(f)) 13,125 5,854,252 '   '   '   5,867,377
Issuance of units net of cash issue costs (note 7 & 8(f)) (in shares) 13,125,002 ' ' ' ' '
Issuance of placement agent warrants as issue costs for the $0.80 unit issuance(note 8(f)) '   (4,087,586) '   6,288,594 '   2,201,008
Issuance of placement agent warrants as issue costs for the $0.80 unit issuance(note 8(f)) (in shares) '   ' ' ' ' '
Issuance of common shares to Valent for future royalty reduction 1,150 596,850 '   '   '   598,000
Issuance of common shares to Valent for future royalty reduction (in shares) 1,150,000 ' ' ' ' '
Exercise of placement agent warrants (note 7) 124 239,476 '   (239,600) '   '  
Exercise of placement agent warrants (note 7) (in shares) 123,810 ' ' ' ' '
Exercise of CDN $0.50 unit warrants (notes 6 and 7) 221 241,494 '   '   '   241,715
Exercise of CDN $0.50 unit warrants (notes 6 and 7) (in shares) 221,000 ' ' ' ' '
Shares issued for services (note 7(d)) 615 1,042,942 '   '   '   1,043,557
Shares issued for services (note 7(d)) (in shares) 615,000 ' ' ' ' '
Stock-based compensation (note 8) '   890,648 '   '   '   890,648
Loss for the period '   '   '   '   (8,290,689) (8,290,689)
Issuance of warrants for services (notes 8) ' ' ' ' ' 124,020
Balance at Dec. 31, 2013 $ 31,535 $ 8,791,715 $ 21,178 $ 6,202,100 $ (15,864,506) $ (817,978)
Balance (in shares) at Dec. 31, 2013 31,534,819 ' ' ' ' 31,534,819
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet06.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Statements of Changes in Stockholders' Equity (Deficiency) (Parentheticals)
12 Months Ended
Dec. 31, 2013
Issuance of units
Dec. 31, 2013
Placement agent
Issuance of units/warrants at net of cash issue costs 0.8 0.8
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet07.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Statements of Cash Flows (USD $)
12 Months Ended 45 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Cash flows from operating activities ' ' ' '
Loss for the period $ (8,290,689) $ (2,400,363) $ (1,333,011) $ (12,132,822)
Items not affecting cash ' ' ' '
Accrued interest 8,020 7,521 6,831 22,372
Change in fair value of derivative liability (1,324,051) (318,502) '   (1,642,553)
Shares issued to Valent for royalty reduction 598,000 ' ' 598,000
Non-cash derivative issue costs 2,201,008 '   '   2,201,008
Units issued for services '   180,144 95,140 275,284
Warrants issued for patents ' ' 89,432 89,432
Warrants issued for services 124,020 49,379 '   173,399
Share-based compensation 2,146,766 1,130,240 95,140 3,404,237
Prototype drug product '   '   250,000 250,000
Net income (loss) after adjustments of non-cash items (4,536,926) (1,351,581) (796,468) (6,761,643)
Changes in non-cash working capital ' ' ' '
Taxes and other receivables 34,437 (6,697) (24,017) (11,062)
Prepaid expenses (142,105) (14,581) (4,098) (170,883)
Accounts payable and accrued liabilities (537,158) 865,007 99,297 367,375
Related party payables (338,747) (70,183) 496,597 109,030
Net cash flows from operating activities (5,520,499) (578,035) (228,689) (6,467,183)
Cash flows from financing activities ' ' ' '
Net proceeds from the issuance of units 9,639,520 671,570 190,826 10,501,916
Deferred costs '   (90,771) '   '  
Net proceeds from the issuance of common shares ' ' 28,506 102,070
Net cash flows from financing activities 9,639,520 580,799 219,332 10,603,986
Increase (decrease) in cash and cash equivalents 4,119,021 2,764 (9,357) 4,136,803
Cash and cash equivalents - beginning of period 17,782 15,018 24,375 '  
Cash and cash equivalents - end of period 4,136,803 17,782 15,018 4,136,803
Supplementary information ' ' ' '
Issuance of shares for the settlement of accounts payable (notes 4 and 9) '   253,050 '   253,050
Issuance of units for the settlement of accounts payable (notes 7 and 9) '   '   23,785 23,785
Non-cash share issuance costs (note 8) 6,288,594 '   14,295 6,302,889
Cashless exercise of Placement Agent Warrants (note 8) 239,600 '   '   239,600
Non-cash acquisition of prototype drug product (note 4) '   '   '   250,000
Settlement of accounts payable with a loan payable (note 4) '   '   250,000 250,000
Exercise of CDN $0.50 warrants for no additional consideration (note 8) 241,715 '   '   241,715
Deferred costs $ 90,771 '   '   '  
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet08.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Consolidated Statements of Cash Flows (Parentheticals) (CDN)
12 Months Ended
Dec. 31, 2013
CDN '
Issuance of units/warrants at net of cash issue costs 0.5
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet09.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Nature of operations and going concern
12 Months Ended
Dec. 31, 2013
Nature Of Operations And Going Concern [Abstract] '
Nature of operations and going concern '
1  
Nature of operations and going concern
 
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.
 
Going Concern
 
For the year ended December 31, 2013, the Company reported a loss of $8,290,689 and an accumulated deficit of $15,864,506 at that date. As at December 31, 2013, the Company has cash and cash equivalents on hand of $4,136,803. The Company does not have the prospect of achieving revenues in the near future and the Company will require additional funding to maintain its research and development projects and for general operations. These circumstances lend substantial doubt as to the ability of the Company to meet its obligations as they come due. The expenses to be incurred in developing and pursuing our Company’s business plan have a large degree of uncertainty.  In addition, the Company has not begun to commercialize or generate revenues from any product candidate.
 
Consequently, management is pursuing 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. We believe, based on our current estimates and plans that we have enough cash to fund our operations for the next 12 to 15 months. Management plans to secure the necessary financing through the issue of new equity and/or the entering into of strategic partnership arrangements. Nevertheless, there is no assurance that these initiatives will be successful.
 
These financial statements have been prepared on a going concern basis which assumes that the Company will continue its operations for the foreseeable future and contemplates the realization of assets and the settlement of liabilities in the normal course of business.
 
The conditions and risks noted above cast substantial doubt on the validity of that assumption. These financial statements do not give effect to any adjustments to the amounts and classification of assets and liabilities that may be necessary and could potentially be material, should the Company be unable to continue as a going concern.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet10.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Significant accounting policies
12 Months Ended
Dec. 31, 2013
Accounting Policies [Abstract] '
Significant accounting policies '
2  
Significant accounting policies
 
Basis of presentation
 
The 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.
 
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.
 
Consolidation
 
The consolidated financial statements include the accounts of Del Mar Pharmaceuticals (BC) Ltd., Callco, and Exchangeco as of and for the years ended December 31, 2013, 2012 and 2011. Inter-company transactions have been eliminated in consolidation.
 
Use of estimates
 
The preparation of 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 consolidated statement of loss each reporting period. This is considered to be a Level 3 financial instrument.
 
Cash and cash equivalents
 
Cash and cash equivalents consist of cash on deposit and highly liquid short-term interest-bearing securities with maturities at the date of purchase of three months or less. Cash and cash equivalents are held at recognized Canadian and United States financial institutions. Interest earned is recognized in the consolidated statements of loss. In 2013 the Company raised financing of net proceeds of $8,575,000. The use of proceeds under this arrangement stated that the proceeds from the financing cannot be used to repay debt.

Foreign currency translation
 
The functional currency of the Company at December 31, 2013 is the United States dollar. Transactions that are denominated in a foreign currency are re-measured into the functional currency at the current exchange rate on the date of the transaction. Any foreign-currency denominated monetary assets and liabilities are subsequently re-measured at current exchange rates, with gains or losses recognized as foreign exchange losses or gains in the consolidated statement of operations. Nonmonetary assets and liabilities are translated at historical exchange rates. Expenses are translated at average exchange rates during the period. Exchange gains and losses are included in consolidated statement of operations for the period.
 
Adjustments arising from the translation of the Company’s financial statements to United States dollars for the periods ended December 31, 2012, 2011 and 2010 due to differences between average rates and balance sheet rates are recorded in other comprehensive income as for those periods the Company’s functional currency was the Canadian dollar.  For those periods the financial statements have been presented in a currency other than the functional currency of the Company as management has determined that the U.S. dollar is the common currency in which the Company’s peers, being international drug and pharmaceutical companies, present their financial statements. For presentation purposes the assets and liabilities of the Company for 2012, 2011, and 2010 have been translated to U.S. dollars at exchange rates at the reporting date. The historical equity transactions have been translated using historical rates in effect on the date that each transaction occurred. The income and expenses are translated to U.S. dollars at the average exchange rate for the period in which the transaction arose. Exchange differences arising are recognized in a separate component of equity titled accumulated other comprehensive income.
 
Current and future income taxes
 
The Company follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Income taxes are accounted for using the asset and liability method of accounting. Future income taxes are recognized for the future income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases and for loss carry-forwards. Future income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax laws or rates is included in earnings in the period that includes the enactment date. When realization of future income tax assets does not meet the more-likely-than-not criterion for recognition, a valuation allowance is provided. 
 
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, taxes and other receivables, accounts payable, related party payables and derivative liability. The carrying values of cash and cash equivalents, taxes and 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 7 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:
 
               
2013
 
                   
Liability
 
Level 1
   
Level 2
   
Level 3
 
                   
Derivative liability
    -       -       4,402,306  
 
               
2012
 
                   
Liability
 
Level 1
   
Level 2
   
Level 3
 
                   
Derivative liability
    -       -       121,000  
 
Prototype drug product
 
The prototype drug product (the “drug”) is stated at the lower of cost and net realizable value. The cost of the drug is comprised of direct costs related to the acquisition of the drug. During the years ended 2012 and 2011, the Company recorded $nil in relation to these amounts as inventories (2010 - $250,000 was recorded as prototype drug product) and fully utilized in clinical and pre-clinical testing trials during the year ended December 31, 2011.
 
Intangible assets
 
Under its assignment agreement with Valent Technologies LLC (“Valent”) (note 4) the Company has incurred certain costs relating to patents assigned to the Company. As the patents had not yet been assigned to the Company at December 31, 2011, the Company has expensed these costs for the year ended December 31, 2011.
 
Expenditures associated with the filing, or maintenance of patents, licensing or technology agreements are expensed as incurred. Costs previously recognized as an expense are not recognized as an asset in subsequent periods.
 
Once the technology has achieved commercialization, patent costs will be deferred and amortized over the remaining life of the related patent.
 
Research and development costs (including clinical trial expenses)
 
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product research and development. Research and development expenses also include third-party development and clinical trial expenses noted below. Such costs related to product research and development are included in research and development expense until the point that technological feasibility is reached, which for our products, is generally shortly before the products are approved by the relevant food and drug administration. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products.
 
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other service providers who conduct specific research for product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements is based on estimates of the work performed on an accrual basis. 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.
 
Research and development costs are expensed in the period incurred. At December 31, 2013 and 2012 all research and development costs were expensed.
  
Shares for services
 
The Company has issued equity instruments for services provided by employees and nonemployees. The equity instruments are valued at the fair value of the instrument granted (see notes 7 and 8 for assumptions).
 
The Company has transferred shares from the DelMar Employee Share Purchase Trust (the “Trust”) (note 8) to consultants and management in exchange for services rendered to the Company. The Company recognizes 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 number of shares outstanding for issue from the Trust at December 31, 2013 is nil (2012 - nil; 2011 - 1,590,625) (note 8).
 
The shares transferred from the Trust have been valued using the fair value of the shares transferred. The Company 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.
  
Comprehensive income
 
In accordance with ASC 220, “Comprehensive Income” (“ASC 220”) all components of comprehensive income, including net loss, are reported in the financial statements in the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and other comprehensive (income) loss, , including foreign currency translation adjustments, are reported, net of any related tax effect, to arrive at comprehensive income. No taxes were recorded on items of other comprehensive income.
 
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 these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company has used 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 (specifically probabilities) 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.
 
Loss per share
 
Income or loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants and stock options are anti-dilutive. Diluted income per share is calculated using the treasury stock method which uses the weighted average number of common shares outstanding during the period and also includes the dilutive effect of potentially issuable common shares from outstanding stock options and warrants. At December 31, 2013, potential common shares of 28,104,009 (2012 - 4,380,000; 2011 - 650,000) related to outstanding warrants and stock options were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive.
 
Segment information
 
The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being Canada. All of the Company’s assets are located in Canada.

Recent accounting pronouncements
 
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.
 
ASU 2013-07 Topic 205 Liquidation basis of accounting
 
Provides guidance on (i) when an entity should apply the liquidation basis of accounting, and (ii) recognition and measurement of assets and liabilities, and requirements for preparation of financial statements, using the liquidation basis of accounting.
 
This standard is effective for entities that determine liquidation is imminent during years, and interim periods within those years, beginning after December 15, 2013.
 
ASU 3013-05 Topic 830 Accounting for cumulative translation adjustments
 
The standards amends cumulative translation adjustment derecognition guidance in particular when (i) an entity ceases to have a controlling financial interest in certain subsidiaries or groups of assets within a foreign entity, or (ii) there is a loss of a controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign entity. This is effective for public entities for years, and interim periods within those years, beginning after December 15, 2013.
 
ASU 2013-11 Topic 740 Accounting for cumulative translation adjustments
 
The standard amends guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This is effective for public entities for years, and interim periods within those years, beginning after December 15, 2013.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet11.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Reverse acquisition
12 Months Ended
Dec. 31, 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 statement of changes in stockholders’ deficiency at December 31, 2013.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet12.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Valent Technologies LLC agreement
12 Months Ended
Dec. 31, 2013
Valent Technologies Llc Agreement [Abstract] '
Valent Technologies LLC agreement '
4  
Valent Technologies LLC agreement
 
On September 12, 2010 the Company entered into a Patent Assignment Agreement (the “Assignment Agreement”) with Valent Technologies LLC (“Valent”) to acquire patents and the prototype drug product related to VAL-083. In accordance with the Assignment Agreement the consideration was $250,000 to acquire the prototype drug product. In addition, under certain circumstances Valent agreed to assign, convey and transfer to the Company all its right, title and interest in and to the patents in exchange for share purchase warrants. The Company will then be responsible for the further development and commercialization of VAL-083. Valent retains an option to reacquire certain intellectual property until a Financing Transaction is completed by the Company. Under the Assignment Agreement, a ‘Financing Transaction’ is defined as a cumulative equity or debt financing(s), or a merger, acquisition, amalgamation, reverse takeover or other combination, or any combination of the foregoing, cumulatively totaling at least $2,000,000. In accordance with the terms of the Assignment Agreement, Valent is entitled to receive a future royalty on revenues derived from the development and commercialization of VAL-083. In the event that the Company terminates the agreement, the Company may be entitled to receive royalties from Valent’s subsequent development of VAL-083 depending on the development milestones the Company has achieved prior to the termination of the Assignment Agreement.
 
On January 25, 2013, in connection with the Company’s reverse acquisition, Valent was issued 1,150,000 shares of common stock of DelMar Pharmaceuticals, Inc., in exchange for Valent reducing certain future royalties under the Assignment Agreement.
 
Pursuant to a loan agreement dated February 3, 2011, the Company received a loan from Valent for the $250,000 for the purchase of the prototype drug product. The loan is unsecured and bears interest at 3.00% per year. As a result the balance of the loan payable, including accrued interest, at December 31, 2013 is $272,372 (2012 - $264,352), including accrued interest of $22,372 (2012 - $14,352).  As a result of the Company’s expectation as to the timing of repayment as a result of the restriction described in note 2 the Company has presented the full loan and accrued interest balance as a non-current liability at December 31, 2013.
 
Pursuant to the Assignment 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 constituted a Financing Transaction under the terms of the Assignment Agreement and 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 8). 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 at December 31, 2011. As a result of the warrants being issued during 2012 the amount previously recognized as additional paid in capital has been reclassified to warrants during the year ended December 31, 2012.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet13.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Taxes and other receivables
12 Months Ended
Dec. 31, 2013
Taxes and Other Receivables [Abstract] '
Taxes and other receivables '
Taxes and other receivables
 
   $2013  $2012 
          
Government grants
  -   34,168 
Other receivables
  11,062   11,331 
          
    11,062   45,499 
 
On May 1, 2012 the Company was granted a non-repayable financial contribution of up to $48,245 (CDN $48,000) from the National Research Council of Canada Industrial Research Assistance Program (“IRAP”). The Company will be reimbursed for certain research and development costs to a maximum of $48,245 (CDN $48,000) in the period from May 1, 2012 thru November 30, 2012. Under this IRAP grant the Company requested an aggregate total reimbursement of $40,542 and has received $6,374 to December 31, 2012 resulting in a receivable of $34,168 at December 31, 2012. Under this IRAP grant the Company did not incur all of the allowable expenses under the grant and as a result $7,703 has lapsed.
 
Total amounts credited in the statement operations for all IRAP grants in 2013 was $nil (2012 - $40,542; 2011 - $66,724).
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet14.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounts payable and accrued liabilities
12 Months Ended
Dec. 31, 2013
Payables and Accruals [Abstract] '
Accounts payable and accrued liabilities '
6  
Accounts payable and accrued liabilities
 
    $ 2013     $ 2012  
                 
Trade payables
    140,457       677,615  
Payable to related parties (note 9)
    109,030       447,777  
                 
      249,487       1,125,392  
 
During the year ended December 31, 2012, the Company issued 500,000 common shares valued at $253,050 (CDN $250,000) as partial settlement of the Company’s accounts payable balance with Valent (note 8). The fair value of the shares issued as partial settlement was based on the financing which occurred during the year ended December 31, 2012.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet15.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability
12 Months Ended
Dec. 31, 2013
Derivative liability [Abstract] '
Derivative liability '
7  
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 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 year ended December 31, 2013, 221,000 warrants were exercised for no additional consideration for 221,000 shares of common stock.  As a result, $241,715 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.
 
Subsequent to December 31, 2013, 20,000 CDN $0.50 warrants were exercised for no additional consideration.  In addition, on January 25, 2014 2,169,000 CDN $0.50 warrants expired.  All of the CDN $0.50 warrants outstanding at December 31, 2013 have now either been exercised or have expired.
 
The remaining warrants issued with the units have been re-valued at December 31, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility – 72.8%, risk free rate - 0.09% and a term of one month.
 
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 December 31, 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.
  
Dividend Warrants
 
As a result of the Reverse Acquisition, 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 December 31, 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 years.
 
Warrants issued for services
 
During the year ended December 31, 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.  The Company has recognized $124,020 in expense in the consolidated statement of operations.
 
The warrants have been measured at fair value at their issue date of December 31, 2013 using a simulated probability valuation model using the following assumptions:  dividend rate - 0%, volatility -88%, risk free rate - 1.8% and a term of approximately 4.75 years.
 
The Company’s derivative liability is summarized as follows:
 
   
December 31,
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
    (1,324,051 )     (318,502 )
Reclassification to equity upon exercise of warrants
    (241,715 )     -  
                 
Closing balance
    4,402,306       121,000
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet16.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency
12 Months Ended
Dec. 31, 2013
Stockholders' deficiency [Abstract] '
Stockholders' deficiency '
8  
Stockholders’ deficiency
 
Preferred stock
 
Authorized
5,000,000 preferred shares, $0.001 par value
 
Issued and outstanding at December 31, 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 December 31, 2013 - 31,534,819 (December 31, 2012 - 13,050,000).  The issued and outstanding common shares include 7,374,583 shares of common stock on an as-exchanged basis with respect to the Exchangeable Shares (note 3).

a)  
Shares issued to founders
 
On May 27, 2010, the Company issued 7,000,000 common shares to its founders at $0.001 per share for total proceeds of $6,667. Of the 7,000,000 shares issued, 6,000,000 were issued to founders who are also officers or directors of the Company. In addition, of the 7,000,000 shares issued, 6,700,000 are subject to vesting provisions and a repurchase option to the Company. At any time prior to the expiration of 36 months from May 27, 2010 the Company at its sole discretion may repurchase some or all of the unvested 6,700,000 shares at $0.001 per share.
 
With respect to the 6,700,000 shares subject to vesting, 25% of the common shares vested immediately on May 27, 2010 and the remaining shares shall vest in twelve equal tranches on each quarterly anniversary of May 27, 2010 with the number of shares to vest on each such date to equal 1/16 of the number of shares issued on May 27, 2010. If any of the subscribers is or becomes a director, officer, employee or consultant of the Company or an affiliate of the Company, all unvested shares shall vest immediately if the subscriber is subsequently removed as a director or officer of the Company or its affiliate, or is subsequently terminated as an employee or consultant of the Company or its affiliate, in each case without cause.
 
b)  
Shares issued to the DelMar Employees Share Purchase Trust
 
The Company has established the DelMar Employees Share Purchase Trust (the “Trust”). The purposes of the Trust are to (i) enhance the ability of the Company and its affiliates to attract, motivate, retain and reward directors, officers, employees and consultants, (b) facilitate employee ownership of shares of the company and (c) promote closer alignment of interests between key employees of the company and its shareholders. The Trust is overseen by a Trustee appointed by the Company and funds from the Company (“Settled Funds”) were used to subscribe for common shares (“Trust Shares”) in the capital of the Company. On May 27, 2010, the Company issued 2,000,000 common shares to the trust. The Company used Settled Funds to pay for the trust Shares.
 
   
Number of shares held in Trust
 
       
Balance - April 6, 2010
    -  
Shares issued to the DelMar Employee Share Purchase Trust
    2,000,000  
Shares transferred to employees and consultants for services
    (325,000 )
Founders shares acquired by the Trust
    68,750  
         
Balance - December 31, 2010
    1,743,750  
Shares transferred to employees and consultants for services
    (200,000 )
Founders shares acquired by the Trust
    46,875  
         
Balance - December 31, 2011
    1,590,625  
Shares transferred to employees and consultants for services
    (1,590,625 )
         
Balance - December 31, 2013 and 2012
    -  
 
 
The Company has transferred shares from the Trust to various consultants for work or services performed for the Company. Shares held by the Trust are not issued and outstanding until the shares are transferred out of the Trust. For the year ended December 31, 2012, the Company recognized the fair value of the shares transferred as an expense with the offsetting charge to capital stock for $781,846 (2011- $95,140, 2010 - $32,091). The Company did not recognize any expenses related to Trust shares for the year ended December 31, 2013 as all shares have been issued from the Trust as of December 31, 2012.
 
Of the 1,590,625 transferred out of the trust during the year ended December 31, 2012, 1,390,625 were transferred to directors of the Company. The related compensation expense was recorded in the consolidated statement of operations.
 
c)  
Shares issued in private placements
 
On August 27, 2010, the Company issued 720,000 common shares at $0.095 (CDN $0.10) per share for total proceeds of $68,414 and on September 8, 2010 the Company issued an additional 280,000 common shares at $0.096 (CDN $0.10) per share for total proceeds of $26,989. Of the total proceeds of $68,414 from the August 27, 2010 issuance, $28,506 was received in 2011 and has been recorded as subscriptions receivable at December 31, 2010.
 
d)  
Shares issued to Valent for settlement of accounts payable
 
During the year ended December 31, 2012, the Company issued 500,000 common shares to Valent for partial settlement of accounts payable (notes 6 and 9).
 
e)  
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).
 
f)  
$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 7).
 
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 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 commission of 5% of the amount of funds raised by an 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 year ended December 31, 2013.
 
g)  
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 4).
 
h)  
Shared issued for services
 
Pursuant to a consulting agreement dated May 1, 2012 the Company issued 20,000 shares of common stock per month from June 1, 2012 to May 1, 2013 inclusive. Under this agreement the Company has issued a total of 100,000 shares of common stock during the year ended December 31, 2013 (2012 – 140,000). 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 year ended December 31, 2013 (2012 - $75,800).
 
In addition to the shares issued under the May 1, 2012 consulting agreement, during the year ended December 31, 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 shares for services expense of $1,043,557 (2012 - $75,800).
 
The total expense of $1,043,557 in addition to the stock option expense of $1,103,209 results in a total share-based payment expense of $2,146,766 for the year ended December 31, 2013 (2012 - $1,130,240).  This total expense has been recognized as to $568,725 and $1,578,041 for research and development, and general and administrative respectively for the year ended December 31, 2013.  For the year ended December 31, 2012 the total share-based payment expense of $1,130,240 has been recognized as to $746,356 and $383,884 for research and development, and general and administrative respectively.
 
Stock options
 
On February 1, 2012, the Company’s board of directors approved its stock option plan (the “Plan”). 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. The requisite service period of the options ranges from six months to three years and also have a range of six months to three years  contractual term.
 
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 as of December 31, 2013:
 
   
Number of
stock
options
outstanding
   
Weighted
average
exercise
price
 
             
Balance - December 31, 2011
    -       -  
Granted
    1,020,000       0.47  
                 
Balance – December 31, 2012
    1,020,000       0.47  
Granted
    2,340,000       1.15  
Cancelled
    (120,000 )     0.47  
                 
Balance – December 31, 2013
    3,240,000       0.96  
                 
 
The following table summarizes stock options currently outstanding and exercisable at December 31, 2013:
 
Exercise price
$
   
Number
outstanding at
December 31,
2013
   
Weighted
average
remaining
contractual
life
(years)
   
Weighted
average
exercise
price
$
   
Number
exercisable
at
December 31,
2013
   
Exercise
price
$
 
                                 
  0.47       900,000       8.08       0.47       726,333       0.47  
  1.05       2,040,000       9.62       1.05       584,296       1.05  
  1.54       180,000       9.25       1.54       180,000       1.54  
  2.30       120,000       9.42       2.30       70,000       2.30  
                                             
          3,240,000               0.96       1,560,629       0.89  
 
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 resulting in an exercise price of $0.47. 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:
 
   
December 31,
2013
$
   
December 31,
2012
$
 
             
Dividend rate
    0 %     0 %
Volatility
 
73% to 85%
      74 %
Risk-free rate
    1.00 %     1.25 %
Term - years
 
1 to 3
      2.1  
 
The Company has recognized the following amounts as stock-based compensation expense for the periods noted:
 
   
Periods ended December 31,
 
             
    $ 2013     $ 2012  
                 
Research and development
    522,725       196,281  
General and administrative
    580,484       76,313  
                 
      1,103,209       272,594  
 
Of the total stock option expense of $1,103,209, $890,648 (2012 - $272,594; 2011 - $nil) has been recognized as additional paid in capital and $212,561 (2012 - $nil; 2011 - $nil) has been recognized as a stock option liability.
 
The aggregate intrinsic value of stock options outstanding at December 31, 2013 was $422,910 (2012 - $306,000; 2011 - $nil) and the aggregate intrinsic value of stock options exercisable at December 31, 2013 was $341,304 (2012 - $172,650; 2011 - $nil). As of December 31, 2013 there was $456,301 in unrecognized compensation expense that will be recognized over the next 2.5 years. No stock options granted under the Plan have been exercised to December 31, 2013.  Upon the exercise of stock options new shares will be issued.
 
A summary of status of the Company’s unvested stock options as of December 31, 2013 under all plans is presented below:
 
   
Number of
options
   
Weighted
average
exercise
price
$
   
Weighted
average
grant date
fair value
$
 
                   
Unvested at December 31, 2011
    -       -       -  
Granted
    1,020,000       0.47       0.30  
Vested
    (575,500 )     0.47       0.30  
                         
Unvested at December 31, 2012
    444,500       0.47       0.30  
Granted
    2,340,000       1.15       0.63  
Cancelled
    (120,000 )     0.47       0.30  
Vested
    (985,129 )     1.05       0.58  
                         
Unvested at December 31, 2013
    1,679,371       1.08       0.59  
                         
 
The aggregate intrinsic value of unvested stock options at December 31, 2013 was $81,606 (2012 - $133,350; 2011 - $nil).  The unvested stock options have a remaining weighted average contractual term of 9.46 years.
 
Warrants
 
   
Number of
warrants
   
Amount
$
 
             
Balance - December 31, 2011
    -       -  
                 
Warrants issued for patents (i)
    500,000       89,432  
Warrants issued as unit issue costs (ii)
    105,000       14,295  
Warrants issued for services (iii)
    345,000       49,379  
                 
Balance - December 31, 2012
    950,000       153,106  
Warrants issued as unit issue costs (iv)
    5,250,000       6,288,594  
Warrants exercised on a cashless basis (v)
    (200,000 )     (239,600 )
                 
Balance - December 31, 2013
    6,000,000       6,202,100  
 
i)  
At December 31, 2011, the Company recognized the fair value of the 500,000 contingent Valent warrants (note 4). The contingent warrants were recognized in additional paid in capital at December 31, 2011 and have been reclassified to warrants when the warrants were issued on February 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
 
ii)  
The Company has issued broker warrants as finder’s fees in relation to the issuance of certain units. 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 has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vest 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.
 
iv)  
As part of the Company’s unit offering the Company has issued 5,250,000 Placement Agent Warrants (note 8(f)). 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.
 
v)  
During the year ended December 31, 2013 200,000 Placement Agent Warrants were exercised on a cashless basis for 123,810 shares of common stock.
  
The fair value of all of the warrants issued in 2012 and 2011 was based on the fair value of the warrants included as part of the unit issuances completed in 2011 and 2012.  The fair value of the warrants issued in 2013 was determined by independent valuation as part of the valuation performed for the Company’s derivative liability (note 7).
 
Certain of the Company’s warrants have been recognized as a derivative liability (note 7).
 
The following table summarizes all of the Company’s outstanding warrants as of December 31, 2013:
 
Description
 
Number
 
       
CDN $0.50 warrants (note 7) (i)
    2,189,000  
Issued as broker warrants (ii)
    105,000  
Issued for patents (iii)
    500,000  
Issued for services (iv)
    345,000  
Investor Warrants (note 7) (v)
    13,125,002  
Dividend warrants (note 7)(vi)
    3,250,007  
Placement Agent (note 8(f))(vii)
    5,050,000  
Issued for services (viii)
    300,000  
         
Closing balance - December 31, 2013
    24,864,009  
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $1.20 per warrant until that date. A total of 20,000 warrants are exercisable for no additional consideration.  Subsequent to December 31, 2013 the 20,000 warrants were exercised for no additional consideration and the remaining 2,169,000 expired (note 13).
 
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.  On March 1, 2014, 5,000 warrants expired (note 13).
 
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 8(f)). 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.
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet17.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Related party transactions
12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract] '
Related party transactions '
Related party transactions
 
During the year ended December 31, 2013
 
The Company paid total cash compensation to its officers of $454,549 for the twelve months ended December 31, 2013.
 
Included in accounts payable at December 31, 2013 is an aggregate amount owing of $74,754 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 December 31, 2013 is an amount of $44,007 relating to clinical development costs incurred by Valent on behalf of the Company.  Additionally, the Company also has a loan payable of $272,372, including accrued interest of $22,372, due to Valent (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 8(g)). As a result of the share issuance the Company has recognized an expense of $598,000 for the year ended December 31, 2013.
 
The Company granted an aggregate 1,410,000 stock options at an exercise price of $1.05 to its officers and directors (note 8).
 
The Company recognized $44,333 in directors’ fees.
 
During the year ended December 31, 2012
 
Pursuant to consulting agreements with the Company’s officers and directors the Company paid a total of $27,022 (CDN $27,000) per month to its officers and directors during the year. Under two of these agreements the directors have elected to receive a portion of their aggregate compensation in the form of units. The Company issued 360,000 units for a total amount of $180,144. The units issued relate to an amount of $15,012 (CDN $15,000) per month from January to December 2012 inclusive. All of the units were issued in February 2012. The Company has recognized $180,144 in services for the year ended December 31, 2012. Of the $180,144, $60,389 has been recognized as general and administrative and $119,755 has been recognized as research and development.
 
Additionally, under the consulting agreements the Company has paid its officers and directors cash compensation totaling an aggregate $12,006 (CDN $12,000) per month. An amount of $144,072 (CDN $144,000) has been paid in cash to the two individuals for the year ended December 31, 2012.
 
Included in related party payables at December 31, 2012 is an aggregate amount owing of $133,658 to the Company’s directors in relation to their respective consulting agreements and for reimbursable expenses.
 
Also included in related party payables December 31, 2012 is an amount of $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 has a loan payable, including accrued interest, of $264,352 due to Valent (note 4).
 
Through a Company owned by one of the Company’s directors, a $25,000 retainer was paid pursuant to the unit financing completed by the Company (note 8). The $25,000 is included in accounts payable at December 31, 2012.
 
The Company granted an aggregate 450,000 stock options at an exercise price of $0.47 (CDN $0.50) to its directors (note 8).
 
The Company transferred a total of 1,390,625 shares from the DelMar Employee Share Purchase Trust to the Company’s directors (note 8).
 
During the year ended December 31, 2011
 
Pursuant to consulting agreements dated August 1, 2011 with the Company’s officers and directors the  Company agreed to compensate its officers and directors for services rendered to the Company. An aggregate $26,550 (CDN $27,000) per month commencing August 1, 2011 and ending December 31, 2012 will be payable pursuant the consulting agreements. Under the consulting agreements the Company and the respective officer or director have mutually agreed that a portion of the compensation payable under the respective agreement shall be deemed to have been invested in the unit offering of the Company as of October 3, 2011. The units issued under these agreements shall have the same terms as the CDN $0.50 units issued by the Company to subscribers of the offering (note 7). 
 
For the period from August 1 to December 31, 2011 $19,028 (CDN $20,000) per month was settled by the Company with units resulting in 150,000 units being issued. Total research and development expenses of $71,355 (CDN $75,000) and general and administrative expenses of $23,785 (CDN $25,000) have been recorded for this issuance of units.
 
The Company also issued 50,000 units to one of its officers for the settlement of accounts payable in the amount of $23,785 (CDN $25,000). The units were measured at fair value using the valuation estimate consistent with the most recent financing.
 
Included in related party payables at December 31, 2011 is an aggregate amount owing of $21,028 to two of the Company’s directors.
 
Also included in related party payable at December 31, 2011 is an amount of $496,932 relating to clinical development costs incurred by Valent on behalf of the Company. The Company also has a loan payable, including accrued interest, of $256,831 due to Valent at December 31, 2011.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet18.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Current and future income taxes
12 Months Ended
Dec. 31, 2013
Current and Future Income Taxes [Abstract] '
Current and future income taxes '
10  
Current and future income taxes
 
The Company has the following non-capital losses available to reduce taxable income of future years:
 
Expiry date
  $  
       
2029
    65,242  
2030
    1,102,400  
2031
    1,159,614  
2033
    4,275,931  
 
Significant components of the Company’s future tax assets are shown below:
 
     
2013
$
     
2012
$
 
                 
Non-capital losses carried forward
    1,822,341       323,910  
Financing costs
    4,115       4,302  
Scientific research and development
    121,490       11,193  
                 
      1,947,946       339,405  
Valuation allowance
    (1,947,946 )     (339,405 )
                 
Net future tax assets
    -       -  
 
The income tax benefit of these tax attributes have not been recorded in these financial statements because of the uncertainty of their recovery.
  
The Company’s effective income tax rate differs from the statutory income tax rate of 34% (2012 - 13.5%, 2011 - 13.5%).
 
The differences arise from the following items:
 
     
2013
$
     
2012
$
 
                 
Tax recovery at statutory income tax rates
    (2,818,834 )     (324,049 )
Permanent differences
    979,359       133,365  
Effect of rate differentials between jurisdictions
   
320,965
      -  
Other
    -       13,087  
Effect of tax rate changes on future taxes
    (305,647     -  
Change in valuation allowance
    1,824,157       177,597  
                 
      -       -
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet19.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Commitments and contingencies
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies [Abstract] '
Commitments and Contingencies '
11  
Commitments and contingencies
 
Office Lease
 
The Company currently rents its offices pursuant to a one-year lease that commenced on November 1, 2013 at a rate of $2,185 (CDN$2,325) per month. During the year ended December 31, 2013, the Company recorded $22,323 as rent expense (2012 - $12,669; 2011 - $480).
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet20.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Financial risk management
12 Months Ended
Dec. 31, 2013
Financial Risk Management [Abstract] '
Financial risk management '
12  
Financial risk management
 
Market risk
 
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or valuation of its financial instruments.
 
The Company is exposed to financial risk related to fluctuation of foreign exchange rates. Foreign currency risk is limited to the portion of the Company’s business transactions denominated in currencies other than the United Sates dollar, primarily general and administrative expenses incurred in CDN dollars. The Company believes that the results of operations, financial position and cash flows would be affected by a sudden change in foreign exchange rates, but would not impair or enhance its ability to pay its CDN dollar accounts payable. The Company manages foreign exchange risk by converting its US to Canadian dollars as needed. The Company has only recently opened a US dollar bank account but maintains the majority of its cash in USD. As at December 31, 2013, Canadian dollar denominated accounts payable and accrued liabilities exposure in US dollars totaled $90,143. 
 
a)  
Foreign exchange risk
 
Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. If foreign exchange rates were to fluctuate within +/-10% of the closing rate at year end the maximum exposure is $9,014.
 
Balances in foreign currencies at December 31, 2013 and 2012 are as follows:
 
   
2013
CDN balances
$
   
2012
CDN balances
$
 
             
Trade payables
    95,835       359,088  
Cash
    75,474       17,873  
 
b)  
Interest rate risk
 
The Company is subject to interest rate risk on its cash and cash equivalents and believes that the results of operations, financial position and cash flows would not be significantly affected by a sudden change in market interest rates relative to the investment interest rates due to the short-term nature of the investments. As at December 31, 2013, cash and cash equivalents held in Canadian dollar savings accounts or short-term investments of $70,961. The Company’s cash balance currently earns interest at standard bank rates. If interest rates were to fluctuate within +/-10% of the closing rate at year end the impact of the Company’s interest bearing accounts will be insignificant.
 
The only financial instruments that expose the Company to interest rate risk are its cash and cash equivalents.
 
Liquidity risk
 
Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet cash flow requirements associated with financial instruments. The recent problems in the global credit markets have resulted in a drastic reduction in the ability of companies to raise capital through the public markets. See note 1 going concern, for additional comments relating to liquidity risk. The Company continues to manage its liquidity risk based on the outflows experienced for the year ended December 31, 2013 and is undertaking efforts to conserve cash resources wherever possible. The maximum exposure of the Company’s liquidity risk is $521,859 at December 31, 2013 (2012 - $1,389,744).
 
Credit risk
 
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as outstanding receivables. The Company limits its exposure to credit risk, with respect to cash and cash equivalents, by placing them with high quality credit financial institutions. The Company’s cash equivalents consist primarily of operating funds with commercial banks. Of the amounts with financial institutions on deposit, the following table summarizes the amounts at risk should the financial institutions with which the deposits are held cease trading:
 
The maximum exposure of the Company’s credit risk is $11,062 at December 31, 2013 (2012 - $45,499).
 
Cash and
cash
equivalents
$
   
Insured
amount
$
   
Non-insured
amount
$
 
               
  4,136,803       70,961       4,065,842  
 
Concentration of credit risk
 
Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents.
 
The Company places its cash and cash equivalents in accredited financial institutions and therefore the Company’s management believes these funds are subject to minimal credit risk. The Company has no significant off-balance sheet concentrations of credit risk such as foreign currency exchange contracts, option contracts or other hedging arrangements.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet21.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Subsequent events
12 Months Ended
Dec. 31, 2013
Subsequent Events [Abstract] '
Subsequent events '
13  
Subsequent events
 
CDN $0.50 warrants
 
Subsequent to December 31, 2013, 20,000 CDN $0.50 warrants were exercised or no additional consideration.  In addition, on January 25, 2014 2,169,000 CDN $0.50 warrants expired.  All of the CDN $0.50 warrants outstanding at December 31, 2013 have now either been exercised or have expired.
 
Broker Warrants
 
On March 1, 2014, 5,000 broker warrants expired.
 
Investor warrants
 
Subsequent to December 31, 2013, 127,313 Investor Warrants were exercised for 127,313 shares of common stock at an exercise price of $0.80 per warrant for total proceeds of $101,850.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet22.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Significant accounting policies (Policies)
12 Months Ended
Dec. 31, 2013
Accounting Policies [Abstract] '
Basis of presentation '
Basis of presentation
 
The 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.
 
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.
Consolidation '
Consolidation
 
The consolidated financial statements include the accounts of Del Mar Pharmaceuticals (BC) Ltd., Callco, and Exchangeco as of and for the years ended December 31, 2013, 2012 and 2011. Inter-company transactions have been eliminated in consolidation.
Use of estimates '
Use of estimates
 
The preparation of 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 consolidated statement of loss each reporting period. This is considered to be a Level 3 financial instrument.
Cash and cash equivalents '
Cash and cash equivalents
 
Cash and cash equivalents consist of cash on deposit and highly liquid short-term interest-bearing securities with maturities at the date of purchase of three months or less. Cash and cash equivalents are held at recognized Canadian and United States financial institutions. Interest earned is recognized in the consolidated statements of loss. In 2013 the Company raised financing of net proceeds of $8,575,000. The use of proceeds under this arrangement stated that the proceeds from the financing cannot be used to repay debt.
Foreign currency translation '
Foreign currency translation
 
The functional currency of the Company at December 31, 2013 is the United States dollar. Transactions that are denominated in a foreign currency are re-measured into the functional currency at the current exchange rate on the date of the transaction. Any foreign-currency denominated monetary assets and liabilities are subsequently re-measured at current exchange rates, with gains or losses recognized as foreign exchange losses or gains in the consolidated statement of operations. Nonmonetary assets and liabilities are translated at historical exchange rates. Expenses are translated at average exchange rates during the period. Exchange gains and losses are included in consolidated statement of operations for the period.
 
Adjustments arising from the translation of the Company’s financial statements to United States dollars for the periods ended December 31, 2012, 2011 and 2010 due to differences between average rates and balance sheet rates are recorded in other comprehensive income as for those periods the Company’s functional currency was the Canadian dollar.  For those periods the financial statements have been presented in a currency other than the functional currency of the Company as management has determined that the U.S. dollar is the common currency in which the Company’s peers, being international drug and pharmaceutical companies, present their financial statements. For presentation purposes the assets and liabilities of the Company for 2012, 2011, and 2010 have been translated to U.S. dollars at exchange rates at the reporting date. The historical equity transactions have been translated using historical rates in effect on the date that each transaction occurred. The income and expenses are translated to U.S. dollars at the average exchange rate for the period in which the transaction arose. Exchange differences arising are recognized in a separate component of equity titled accumulated other comprehensive income.
Current and future income taxes '
Current and future income taxes
 
The Company follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current period. Income taxes are accounted for using the asset and liability method of accounting. Future income taxes are recognized for the future income tax consequences attributable to differences between the carrying values of assets and liabilities and their respective income tax bases and for loss carry-forwards. Future income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the periods in which temporary differences are expected to be recovered or settled. The effect on future income tax assets and liabilities of a change in tax laws or rates is included in earnings in the period that includes the enactment date. When realization of future income tax assets does not meet the more-likely-than-not criterion for recognition, a valuation allowance is provided.
Financial instruments '
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, taxes and other receivables, accounts payable, related party payables and derivative liability. The carrying values of cash and cash equivalents, taxes and 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 7 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:
 
               
2013
 
                   
Liability
 
Level 1
   
Level 2
   
Level 3
 
                   
Derivative liability
    -       -       4,402,306  
 
               
2012
 
                   
Liability
 
Level 1
   
Level 2
   
Level 3
 
                   
Derivative liability
    -       -       121,000  
 
Prototype drug product '
Prototype drug product
 
The prototype drug product (the “drug”) is stated at the lower of cost and net realizable value. The cost of the drug is comprised of direct costs related to the acquisition of the drug. During the years ended 2012 and 2011, the Company recorded $nil in relation to these amounts as inventories (2010 - $250,000 was recorded as prototype drug product) and fully utilized in clinical and pre-clinical testing trials during the year ended December 31, 2011.
Intangible assets '
Intangible assets
 
Under its assignment agreement with Valent Technologies LLC (“Valent”) (note 4) the Company has incurred certain costs relating to patents assigned to the Company. As the patents had not yet been assigned to the Company at December 31, 2011, the Company has expensed these costs for the year ended December 31, 2011.
 
Expenditures associated with the filing, or maintenance of patents, licensing or technology agreements are expensed as incurred. Costs previously recognized as an expense are not recognized as an asset in subsequent periods.
 
Once the technology has achieved commercialization, patent costs will be deferred and amortized over the remaining life of the related patent.
Research and development costs (including clinical trial expenses) '
Research and development costs (including clinical trial expenses)
 
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product research and development. Research and development expenses also include third-party development and clinical trial expenses noted below. Such costs related to product research and development are included in research and development expense until the point that technological feasibility is reached, which for our products, is generally shortly before the products are approved by the relevant food and drug administration. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products.
 
Clinical trial expenses are a component of research and development costs and include fees paid to contract research organizations, investigators and other service providers who conduct specific research for product development activities on behalf of the Company. The amount of clinical trial expenses recognized in a period related to service agreements is based on estimates of the work performed on an accrual basis. 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.
 
Research and development costs are expensed in the period incurred. At December 31, 2013 and 2012 all research and development costs were expensed.
Shares for services '
Shares for services
 
The Company has issued equity instruments for services provided by employees and nonemployees. The equity instruments are valued at the fair value of the instrument granted (see notes 7 and 8 for assumptions).
 
The Company has transferred shares from the DelMar Employee Share Purchase Trust (the “Trust”) (note 8) to consultants and management in exchange for services rendered to the Company. The Company recognizes 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 number of shares outstanding for issue from the Trust at December 31, 2013 is nil (2012 - nil; 2011 - 1,590,625) (note 8).
 
The shares transferred from the Trust have been valued using the fair value of the shares transferred. The Company 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.
Comprehensive income '
Comprehensive income
 
In accordance with ASC 220, “Comprehensive Income” (“ASC 220”) all components of comprehensive income, including net loss, are reported in the financial statements in the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net loss and other comprehensive (income) loss, , including foreign currency translation adjustments, are reported, net of any related tax effect, to arrive at comprehensive income. No taxes were recorded on items of other comprehensive income.
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 these warrants on its balance sheet as a derivative liability which is fair valued at each reporting period subsequent to the initial issuance. The Company has used 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 (specifically probabilities) 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.
Loss per share '
Loss per share
 
Income or loss per share is calculated based on the weighted average number of common shares outstanding. Diluted loss per share does not differ from basic loss per share since the effect of the Company’s warrants and stock options are anti-dilutive. Diluted income per share is calculated using the treasury stock method which uses the weighted average number of common shares outstanding during the period and also includes the dilutive effect of potentially issuable common shares from outstanding stock options and warrants. At December 31, 2013, potential common shares of 28,104,009 (2012 - 4,380,000; 2011 - 650,000) related to outstanding warrants and stock options were excluded from the calculation of net loss per common share because their inclusion would be anti-dilutive.
Segment information '
Segment information
 
The Company identifies its operating segments based on business activities, management responsibility and geographical location. The Company operates within a single operating segment being the research and development of cancer indications, and operates in one geographic area, being Canada. All of the Company’s assets are located in Canada.
Recent accounting pronouncements '
Recent accounting pronouncements
 
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.
 
ASU 2013-07 Topic 205 Liquidation basis of accounting
 
Provides guidance on (i) when an entity should apply the liquidation basis of accounting, and (ii) recognition and measurement of assets and liabilities, and requirements for preparation of financial statements, using the liquidation basis of accounting.
 
This standard is effective for entities that determine liquidation is imminent during years, and interim periods within those years, beginning after December 15, 2013.
 
ASU 3013-05 Topic 830 Accounting for cumulative translation adjustments
 
The standards amends cumulative translation adjustment derecognition guidance in particular when (i) an entity ceases to have a controlling financial interest in certain subsidiaries or groups of assets within a foreign entity, or (ii) there is a loss of a controlling financial interest in a foreign entity or a step acquisition involving an equity method investment that is a foreign entity. This is effective for public entities for years, and interim periods within those years, beginning after December 15, 2013.
 
ASU 2013-11 Topic 740 Accounting for cumulative translation adjustments
 
The standard amends guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This is effective for public entities for years, and interim periods within those years, beginning after December 15, 2013.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet23.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Significant accounting policies (Tables)
12 Months Ended
Dec. 31, 2013
Accounting Policies [Abstract] '
Schedule of liabilities under the fair value hierarchy '
 
       
2013
 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   4,402,306 
 
         
2012
 
           
Liability
 
Level 1
  
Level 2
  
Level 3
 
           
Derivative liability
  -   -   121,000
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet24.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Reverse acquisition (Tables)
12 Months Ended
Dec. 31, 2013
Reverse Acquisition [Abstract] '
Schedule of reverse acquisition '
 
 
   $     
         
Net liabilities (derivative liability)
  2,041,680     
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet25.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Taxes and other receivables (Tables)
12 Months Ended
Dec. 31, 2013
Taxes and Other Receivables [Abstract] '
Schedule of taxes and other receivables '
 $2013  $2012 
          
Government grants
  -   34,168 
Other receivables
  11,062   11,331 
          
    11,062   45,499 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet26.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounts payable and accrued liabilities(Tables)
12 Months Ended
Dec. 31, 2013
Payables and Accruals [Abstract] '
Schedule of accounts payable and accrued liabilities '
 
    $ 2013     $ 2012  
                 
Trade payables
    140,457       677,615  
Payable to related parties (note 9)
    109,030       447,777  
                 
      249,487       1,125,392  
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet27.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability (Tables)
12 Months Ended
Dec. 31, 2013
Derivative liability [Abstract] '
Shedule of derivative liabilities '
 
  
December 31,
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
  (1,324,051)  (318,502)
Reclassification to equity upon exercise of warrants
  (241,715)  - 
         
Closing balance
  4,402,306   121,000 
 
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet28.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Tables)
12 Months Ended
Dec. 31, 2013
Stockholders' deficiency [Abstract] '
Summary of number of shares held in trust '

  
Number of shares held in Trust
 
    
Balance - April 6, 2010
  - 
Shares issued to the DelMar Employee Share Purchase Trust
  2,000,000 
Shares transferred to employees and consultants for services
  (325,000)
Founders shares acquired by the Trust
  68,750 
     
Balance - December 31, 2010
  1,743,750 
Shares transferred to employees and consultants for services
  (200,000)
Founders shares acquired by the Trust
  46,875 
     
Balance - December 31, 2011
  1,590,625 
Shares transferred to employees and consultants for services
  (1,590,625)
     
Balance - December 31, 2013 and 2012
  - 
 
 
Schedule of options outstanding under the plan '

  
Number of
stock
options
outstanding
  
Weighted
average
exercise
price
 
       
Balance - December 31, 2011
  -   - 
Granted
  1,020,000   0.47 
         
Balance – December 31, 2012
  1,020,000   0.47 
Granted
  2,340,000   1.15 
Cancelled
  (120,000)  0.47 
         
Balance – December 31, 2013
  3,240,000   0.96 
         
 
Schedule of stock options currently outstanding and exercisable '

Exercise price
$
   
Number
outstanding at
December 31,
2013
   
Weighted
average
remaining
contractual
life
(years)
   
Weighted
average
exercise
price
$
   
Number
exercisable
at
December 31,
2013
   
Exercise
price
$
 
                                 
  0.47       900,000       8.08       0.47       726,333       0.47  
  1.05       2,040,000       9.62       1.05       584,296       1.05  
  1.54       180,000       9.25       1.54       180,000       1.54  
  2.30       120,000       9.42       2.30       70,000       2.30  
                                             
          3,240,000               0.96       1,560,629       0.89  
 
Schedule of stock options valuation assumptions using a Black-Scholes pricing model '

  
December 31,
2013
$
  
December 31,
2012
$
 
       
Dividend rate
  0%  0%
Volatility
 
73% to 85%
   74%
Risk-free rate
  1.00%  1.25%
Term - years
 
1 to 3
   2.1 
 
Schedule of stock-based compensation expense '

  
Periods ended December 31,
 
       
  $2013  $2012 
         
Research and development
  522,725   196,281 
General and administrative
  580,484   76,313 
         
   1,103,209   272,594 
 
Schedule of unvested stock options '
 
   
Number of
options
   
Weighted
average
exercise
price
$
   
Weighted
average
grant date
fair value
$
 
                   
Unvested at December 31, 2011
    -       -       -  
Granted
    1,020,000       0.47       0.30  
Vested
    (575,500 )     0.47       0.30  
                         
Unvested at December 31, 2012
    444,500       0.47       0.30  
Granted
    2,340,000       1.15       0.63  
Cancelled
    (120,000 )     0.47       0.30  
Vested
    (985,129 )     1.05       0.58  
                         
Unvested at December 31, 2013
    1,679,371       1.08       0.59  
                         
 
Schedule of warrants '

  
Number of
warrants
  
Amount
$
 
       
Balance - December 31, 2011
  -   - 
         
Warrants issued for patents (i)
  500,000   89,432 
Warrants issued as unit issue costs (ii)
  105,000   14,295 
Warrants issued for services (iii)
  345,000   49,379 
         
Balance - December 31, 2012
  950,000   153,106 
Warrants issued as unit issue costs (iv)
  5,250,000   6,288,594 
Warrants exercised on a cashless basis (v)
  (200,000)  (239,600)
         
Balance - December 31, 2013
  6,000,000   6,202,100 
 
i)  
At December 31, 2011, the Company recognized the fair value of the 500,000 contingent Valent warrants (note 4). The contingent warrants were recognized in additional paid in capital at December 31, 2011 and have been reclassified to warrants when the warrants were issued on February 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
 
ii)  
The Company has issued broker warrants as finder’s fees in relation to the issuance of certain units. 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 has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vest 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.
 
iv)  
As part of the Company’s unit offering the Company has issued 5,250,000 Placement Agent Warrants (note 8(f)). 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.
 
v)  
During the year ended December 31, 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 7) (i)
  2,189,000 
Issued as broker warrants (ii)
  105,000 
Issued for patents (iii)
  500,000 
Issued for services (iv)
  345,000 
Investor Warrants (note 7) (v)
  13,125,002 
Dividend warrants (note 7)(vi)
  3,250,007 
Placement Agent (note 8(f))(vii)
  5,050,000 
Issued for services (viii)
  300,000 
     
Closing balance - December 31, 2013
  24,864,009 
 
i)  
All of the warrants expire on January 25, 2014. They are exercisable at $1.20 per warrant until that date. A total of 20,000 warrants are exercisable for no additional consideration.  Subsequent to December 31, 2013 the 20,000 warrants were exercised for no additional consideration and the remaining 2,169,000 expired (note 13).
 
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.  On March 1, 2014, 5,000 warrants expired (note 13).
 
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 8(f)). They are exercisable at $0.80 per warrant for five years commencing from their respective issue dates.
 
i)  
The Dividend Warrants are exercisable at $1.25 per warrant until January 24, 2018.
 
ii)  
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.
 
iii)  
The warrants are exercisable on a cashless basis at a price of $1.76 per warrant until September 12, 2018.
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet29.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Current and future income taxes (Tables)
12 Months Ended
Dec. 31, 2013
Current and Future Income Taxes [Abstract] '
Schedule of taxable income '
Expiry date
  $  
       
2029
    65,242  
2030
    1,102,400  
2031
    1,159,614  
2033
    4,275,931  
 
Components of future tax assets '
   
2013
$
     
2012
$
 
                 
Non-capital losses carried forward
    1,822,341       323,910  
Financing costs
    4,115       4,302  
Scientific research and development
    121,490       11,193  
                 
      1,947,946       339,405  
Valuation allowance
    (1,947,946 )     (339,405 )
                 
Net future tax assets
    -       -  
 
Schedule of difference between income tax rate and statutory income tax rate '
   
2013
$
     
2012
$
 
                 
Tax recovery at statutory income tax rates
    (2,818,834 )     (324,049 )
Permanent differences
    979,359       133,365  
Effect of rate differentials between jurisdictions
   
320,965
      -  
Other
    -       13,087  
Effect of tax rate changes on future taxes
    (305,647     -  
Change in valuation allowance
    1,824,157       177,597  
                 
      -       -  
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet30.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Financial risk management (Tables)
12 Months Ended
Dec. 31, 2013
Financial Risk Management [Abstract] '
Balances in foreign currency '
 
   
2013
CDN balances
$
   
2012
CDN balances
$
 
             
Trade payables
    95,835       359,088  
Cash
    75,474       17,873  
 
Fair value of off-balance sheet risks '
 
Cash and
cash
equivalents
$
   
Insured
amount
$
   
Non-insured
amount
$
 
               
  4,136,803       70,961       4,065,842  
 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet31.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Nature of operations and going concern (Detail Textuals) (USD $)
9 Months Ended 12 Months Ended 45 Months Ended
Dec. 31, 2010
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Apr. 06, 2010
Nature Of Operations And Going Concern [Abstract] ' ' ' ' ' '
Net loss $ (108,759) $ (8,290,689) $ (2,400,363) $ (1,333,011) $ (12,132,822) '
Accumulated deficit ' 15,864,506 3,842,133 ' 15,864,506 '
Cash and cash equivalents $ 24,375 $ 4,136,803 $ 17,782 $ 15,018 $ 4,136,803 '  
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet32.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Significant accounting policies (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Liability ' '
Derivative liability $ 241,715 '
Level 1 ' '
Liability ' '
Derivative liability '   '  
Level 2 ' '
Liability ' '
Derivative liability '   '  
Level 3 ' '
Liability ' '
Derivative liability $ 4,402,306 $ 121,000
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet33.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Significant accounting policies (Detail Textuals) (USD $)
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Common stock
Dec. 31, 2012
Common stock
Dec. 31, 2011
Common stock
Dec. 31, 2010
Common stock
Apr. 06, 2010
Common stock
Dec. 31, 2013
Stock Options
Dec. 31, 2012
Stock Options
Dec. 31, 2011
Stock Options
Dec. 31, 2013
Warrants
Dec. 31, 2012
Warrants
Dec. 31, 2011
Warrants
Significant Accounting Policies [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' ' '
Net proceeds from short term financing $ 8,575,000 ' ' ' ' ' ' ' ' ' ' ' ' '
Prototype drug product $ 250,000 '   '   ' ' ' ' ' ' ' ' ' ' '
Number of shares outstanding for issue from the Trust ' ' ' '   '   '   1,743,750 '   ' ' ' ' ' '
Antidilutive securities excluded from computation of earnings per share ' ' ' ' ' ' ' ' 28,104,009 4,380,000 650,000 28,104,009 4,380,000 650,000
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet34.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
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
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet35.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Reverse acquisition (Detail Textuals) (Exchange Agreement (the "Reverse Acquisition"), DelMar Pharmaceuticals (BC) Ltd., USD $)
12 Months Ended 1 Months Ended
Dec. 31, 2013
Jan. 25, 2013
Common stock
Jan. 25, 2013
Common stock
Stock Options
Jan. 25, 2013
United States Residents
Common stock
Jan. 25, 2013
Canadian Residents
Common stock
Schedule Of Reverse Acquisition [Line Items] ' ' ' ' '
Number of shares issued and outstanding in exchange for transfer to Exchangeco ' 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 ' '
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 ' ' ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet36.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Valent Technologies LLC agreement (Detail Textuals)
12 Months Ended 1 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2011
USD ($)
Dec. 31, 2013
Warrants
Jan. 25, 2013
DelMar Pharmaceuticals, Inc
Sep. 12, 2010
Loan agreement
USD ($)
Sep. 12, 2010
Loan agreement
Valent Technologies, LLC
USD ($)
Dec. 31, 2013
Loan agreement
Valent Technologies, LLC
USD ($)
Dec. 31, 2012
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] ' ' ' ' ' ' ' ' '
Consideration paid to acquire patent and prototype of drug product ' ' ' $ 250,000 ' ' ' ' '
Lease amount of financing transaction ' ' ' ' 2,000,000 ' ' ' '
Issuance of common shares to Valent for future royalty reduction (in shares) ' ' 1,150,000 ' ' ' ' ' '
Loan amount ' ' ' ' ' ' ' 250,000 '
Unsecured loan interest bearing rate ' ' ' ' ' ' ' 3.00% '
Loan payable, including accrued interest ' ' ' ' ' 272,372 264,352 ' '
Accrued interest ' ' ' ' ' 22,372 14,352 ' '
Number of warrants issued ' 200,000 ' ' ' ' ' ' 500,000
Exercise price of warrants (in Canadian dollars per warrant) ' ' ' ' ' ' ' ' 0.5
Fair value of the contingent warrants $ 89,432 ' ' ' ' ' ' ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet37.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Taxes and other receivables (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Schedule of taxes and other receivables ' '
Government grants '   $ 34,168
Other receivables 11,062 11,331
Taxes and other receivables $ 11,062 $ 45,499
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet38.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Taxes and other receivables (Details Textuals)
Dec. 31, 2013
USD ($)
May 01, 2012
IRAP
USD ($)
May 01, 2012
IRAP
CAD
Nov. 30, 2012
IRAP
USD ($)
Nov. 30, 2012
IRAP
CAD
Dec. 31, 2013
IRAP
USD ($)
Dec. 31, 2012
IRAP
USD ($)
Dec. 31, 2011
IRAP
USD ($)
Schedule of Taxes and Other Receivables [Line Items] ' ' ' ' ' ' ' '
Non-repayable financial contribution ' $ 48,245 48,000 ' ' ' ' '
Maximum amount of reimbursement for research and development costs ' ' ' 48,245 48,000 ' ' '
Aggregate total amount of reimbursement ' ' ' ' ' '   40,542 66,724
Reimbursement received ' ' ' ' ' ' 6,374 '
Reimbursement receivable '   ' ' ' ' '   34,168 '
Amount lapsed under grant ' ' ' ' ' $ 7,703 ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet39.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounts payable and accrued liabilities (Details) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Payables and Accruals [Abstract] ' '
Trade payables $ 140,457 $ 677,615
Payable to related parties (note 9) 109,030 447,777
Accounts payable and accrued liabilities total $ 249,487 $ 1,125,392
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet40.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Accounts payable and accrued liabilities (Details Textual) (Common Stock [Member])
12 Months Ended
Dec. 31, 2012
USD ($)
Dec. 31, 2012
CAD
Dec. 31, 2011
Accounts Payable And Accrued Liabilities [Line Items] ' ' '
Issuance of stock for settlement of accounts payable (in shares) 500,000 500,000 50,000
Issuance of shares for settlement of accounts payable $ 253,050 250,000 '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet41.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability - Summary of derivative liability (Details) (USD $)
12 Months Ended 45 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Schedule Of Derivative Liabilities [Roll Forward] ' ' ' '
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 49,379 ' '
Change in fair value of derivative liability (1,324,051) (318,502) '   (1,642,553)
Reclassification to equity upon exercise of warrants (241,715) '   ' '
Closing balance $ 4,402,306 $ 121,000 $ 106,146 $ 4,402,306
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet42.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability (Detail Textuals)
0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended 36 Months Ended 45 Months Ended
May 10, 2012
Unit
Oct. 07, 2011
Unit
Oct. 03, 2011
Unit
Feb. 27, 2012
Unit
Jan. 23, 2012
Unit
Nov. 11, 2011
Unit
Dec. 31, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2013
Unit
Dec. 31, 2013
USD ($)
Dec. 31, 2013
CAD
Derivative liability [Abstract] ' ' ' ' ' ' ' ' ' ' '
Number of units issued for services in settlement of accounts payable 50,000 100,000 500,000 560,000 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 ' ' ' ' ' ' 221,000 ' ' ' '
Reclassification to equity upon exercise of warrants ' ' ' ' ' ' $ (241,715) '   ' ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet43.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability (Detail Textuals 1) (USD $)
12 Months Ended 45 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Derivative [Line Items] ' ' ' '
Warrants issued for services $ 124,020 $ 49,379 '   $ 173,399
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 ' ' '
Number of consecutive trading days '20 days ' ' '
Warrants exercisable description 'Dividend Warrants are exercisable at $1.25 per share until January 24, 2018. ' ' '
Exercise Price 1.25 ' ' 1.25
Warrants, redemption description '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. ' ' '
Warrants redemption period 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 ' ' '
Term of warrants '5 years ' ' '
Exercise Price 1.76 ' ' 1.76
Warrants issued for services $ 124,020 ' ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet44.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Derivative liability (Detail Textuals 2)
12 Months Ended
Dec. 31, 2013
Warrants '
Derivative [Line Items] '
Fair value assumptions dividend rate 0.00%
Fair value assumptions volatility rate 72.80%
Fair value assumptions risk free rate 0.09%
Fair value assumptions expected term '1 month
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
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 3 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 88.00%
Fair value assumptions risk free rate 1.80%
Fair value assumptions expected term '4 years 9 months
Fair value assumptions valuation model '
simulated probability valuation model 
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet45.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Number of shares held in trust (Details) (Common Stock [Member])
9 Months Ended 12 Months Ended
Dec. 31, 2010
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Common Stock [Member] ' ' ' '
Common Stock Issued And Outstanding [Roll Forward] ' ' ' '
Beginning balance '   '   1,743,750 '  
Shares issued to the DelMar Employee Share Purchase Trust 2,000,000 ' ' '
Shares transferred to employees and consultants for services (325,000) (1,590,625) (200,000) '
Founders shares acquired by the Trust 68,750 ' 46,875 '
Ending balance 1,743,750 '   '   '  
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet46.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Options outstanding under Plan (Details 1)
12 Months Ended
Dec. 31, 2013
USD ($)
Dec. 31, 2013
CAD
Dec. 31, 2013
Stock Options
USD ($)
Dec. 31, 2012
Stock Options
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] ' ' ' '
Beginning Balance ' ' 1,020,000 '  
Granted 900,000 900,000 2,340,000 1,020,000
Cancelled ' ' (120,000) '
Ending Balance ' ' 3,240,000 1,020,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] ' ' ' '
Beginning balance (in Dollars per share) ' ' $ 0.47 '  
Granted $ 0.47 0.5 $ 1.15 $ 0.47
Cancelled (in Dollars per share) ' ' $ 0.47 '
Ending balance (in Dollars per share) ' ' $ 0.96 $ 0.47
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet47.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Stock options outstanding and exercisable (Details 2) (Stock Options, USD $)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Zero Point Four Seven [Member]
Dec. 31, 2013
One point zero five [Member]
Dec. 31, 2013
One Point Five Four [Member]
Dec. 31, 2013
Two Point Three Zero [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' ' ' ' ' ' '
Exercise price (in Dollars per share) ' ' ' $ 0.47 $ 1.05 $ 1.54 $ 2.3
Number of stock options outstanding 3,240,000 1,020,000 '   900,000 2,040,000 180,000 120,000
Weighted average remaining contractual life (years) ' ' ' '8 years 29 days '9 years 7 months 13 days '9 years 3 months '9 years 5 months 1 day
Weighted average exercise price (in Dollars per share) $ 0.96 $ 0.47 '   $ 0.47 $ 1.05 $ 1.54 $ 2.3
Number of stock options exercisable 1,560,629 ' ' 726,333 584,296 180,000 70,000
Exercise price (in Dollars per share) $ 0.89 ' ' $ 0.47 $ 1.05 $ 1.54 $ 2.3
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet48.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Stock options valuation assumptions (Details 3) (Stock Options)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Dividend rate 0.00% 0.00%
Volatility ' 74.00%
Risk-free rate 1.00% 1.25%
Term - years ' '2 years 1 month 6 days
Minimum [Member] ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Volatility 73.00% '
Term - years '1 year '
Maximum [Member] ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Volatility 85.00% '
Term - years '3 years '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet49.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Stock-based compensation expense (Details 4) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Allocated share based compensation expense $ 1,103,209 $ 272,594
Research and development ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Allocated share based compensation expense 522,725 196,281
General and administrative ' '
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] ' '
Allocated share based compensation expense $ 580,484 $ 76,313
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet50.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Unvested stock options (Details 5)
12 Months Ended
Dec. 31, 2013
USD ($)
Dec. 31, 2013
CAD
Dec. 31, 2013
Stock Options
USD ($)
Dec. 31, 2012
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 '  
Number of options, granted 900,000 900,000 2,340,000 1,020,000
Number of options, Cancelled ' ' (120,000) '
Number of options, vested ' ' (985,129) (575,500)
Number of options unvested, ending balance ' ' 1,679,371 444,500
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) ' ' $ 0.47 '  
Weighted average exercise price unvested, granted (in Dollars per share) $ 0.47 0.5 $ 1.15 $ 0.47
Weighted average exercise price unvested, cancelled (in Dollars per share) ' ' $ 0.47 '
Weighted average exercise price unvested, vested (in Dollars per share) ' ' $ 1.05 $ 0.47
Weighted average exercise price unvested, ending balance (in Dollars per share) ' ' $ 1.08 $ 0.47
Share Based Compensation Arrangement By Share Based Payment Award Stock Options Unvested Weighted Average Grant Date Fair Value [Roll Forward] ' ' ' '
Weighted average grant date fair value, unvested, beginning balance (in Dollars per share) ' ' $ 0.3 '  
Weighted average grant date fair value, unvested, granted (in Dollars per share) ' ' $ 0.63 $ 0.3
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) ' ' $ 0.58 $ 0.3
Weighted average grant date fair value, unvested, ending balance (in Dollars per share) ' ' $ 0.59 $ 0.3
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet51.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Warrants (Details 6) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Number Of Warrants [Roll Forward] ' '
Beginning Balance 950,000 '  
Warrants issued for patents ' 500,000 [1]
Warrants issued as unit issue costs 5,250,000 [2] 105,000 [3]
Warrants issued for services ' 345,000 [4]
Warrants exercised on a cashless basis $ (200,000) [5] '
Ending Balance 6,000,000 950,000
Value Of Warrants [Roll Forward] ' '
Beginning Balance 153,106 '  
Warrants issued for patents ' 89,432 [1]
Warrants issued as unit issue costs 6,288,594 [2] 14,295 [3]
Warrants issued for services ' 49,379 [4]
Warrants exercised on a cashless basis (239,600) [5] '
Ending Balance $ 6,202,100 $ 153,106
[1] At December 31, 2011, the Company recognized the fair value of the 500,000 contingent Valent warrants (note 4). The contingent warrants were recognized in additional paid in capital at December 31, 2011 and have been reclassified to warrants when the warrants were issued on February 1, 2012. The warrants have an exercise price of CDN $0.50 per warrant and expire February 1, 2017.
[2] As part of the Company's unit offering the Company has issued 5,250,000 Placement Agent Warrants (note 8(f)). 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.
[3] The Company has issued broker warrants as finder's fees in relation to the issuance of certain units. 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.
[4] The Company has issued 345,000 warrants for investor relations services. The warrants were issued on February 1, 2012 and they vest 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] During the year ended December 31, 2013 200,000 Placement Agent Warrants were exercised on a cashless basis for 123,810 shares of common stock.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet52.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency - Summary of outstanding warrants (Details 7)
Dec. 31, 2013
Stockholders Equity Note [Line Items] '
Closing balance of warrants outstanding 24,864,009
CDN $0.50 warrants '
Stockholders Equity Note [Line Items] '
Closing balance of warrants outstanding 2,189,000 [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 that date. A total of 20,000 warrants are exercisable for no additional consideration. Subsequent to December 31, 2013 the 20,000 warrants were exercised for no additional consideration and the remaining 2,169,000 expired (note 13).
[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. On March 1, 2014, 5,000 warrants expired (note 13).
[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 8(f)). 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.
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet53.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Detail Textuals) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2010
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) 31,534,819 13,050,000 ' 3,250,007 ' ' ' '
Common stock, shares outstanding (in shares) 31,534,819 13,050,000 8,256,250 3,250,007 ' 7,374,583 ' '
Number of shares acquired ' ' ' ' ' ' 13,070,000 '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet54.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Detail Textuals 1)
9 Months Ended 12 Months Ended 45 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 9 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2010
USD ($)
Dec. 31, 2012
USD ($)
Dec. 31, 2011
USD ($)
Dec. 31, 2013
USD ($)
Sep. 08, 2010
Private Placement
USD ($)
Sep. 08, 2010
Private Placement
CAD
Aug. 27, 2010
Private Placement
USD ($)
Aug. 27, 2010
Private Placement
CAD
Dec. 31, 2010
Private Placement
USD ($)
Dec. 31, 2012
Director
May 27, 2010
Common stock
USD ($)
Dec. 31, 2010
Common stock
USD ($)
Dec. 31, 2012
Common stock
USD ($)
Dec. 31, 2011
Common stock
USD ($)
Dec. 31, 2013
Common stock
USD ($)
May 27, 2010
Common stock
Founders [Member]
USD ($)
May 27, 2010
Director and Officer [Member]
Common stock
Founders [Member]
Dec. 31, 2012
Valent Technologies, LLC
Jan. 25, 2013
Exchange Agreement (the "Reverse Acquisition")
DelMar Pharmaceuticals (BC) Ltd.
Common stock
Stockholders Equity Note [Line Items] ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
Stock issued to founders, shares ' ' ' ' ' ' ' ' ' ' ' 7,000,000 ' ' ' 7,000,000 6,000,000 ' '
Stock issued to founders, per share ' ' ' ' ' ' ' ' ' ' ' ' ' ' $ 0.001 $ 0.001 ' ' '
Stock issued to founders, proceeds $ 6,667 ' ' ' ' ' ' ' ' ' ' $ 7,000 ' ' ' $ 6,667 ' ' '
Shares issued to the DelMar Employee Share Purchase Trust ' ' ' ' ' ' ' ' ' ' ' 2,000,000 ' ' ' ' ' ' '
Number of stock issued pursuant to vesting provisions and a repurchase option ' ' ' ' ' ' ' ' ' ' 6,700,000 ' ' ' ' ' ' ' '
Number of unvested shares to be repurchased prior to the expiration period ' ' ' ' ' ' ' ' ' ' 6,700,000 ' ' ' ' ' ' ' '
Stock repurchase price per share ' ' ' ' ' ' ' ' ' ' $ 0.001 ' ' ' ' ' ' ' '
Vesting percentage of common stock ' ' ' ' ' ' ' ' ' ' 25.00% ' ' ' ' ' ' ' '
Description of vesting of common stock ' ' ' ' ' ' ' ' ' ' '25% of the common shares shall vested immediately on May 27, 2010 and the remaining shares shall vest in twelve equal tranches on each quarterly anniversary of May 27, 2010 with the number of shares to vest on each such date to equal 1/16 of the number of shares issued on May 27, 2010. ' ' ' ' ' ' ' '
Expiration period of stock option ' ' ' ' ' ' ' ' ' ' '36 months ' ' ' ' ' ' ' '
Common stock issued during period ' ' ' ' 280,000 280,000 720,000 720,000 ' ' ' 1,000,000 ' ' ' ' ' ' '
Common stock per share amount (in dollars per share) ' ' ' ' $ 0.096 0.1 $ 0.095 0.1 ' ' ' ' ' ' ' ' ' ' '
Proceeds from issuance of common stock ' ' 28,506 102,070 26,989 ' 68,414 ' ' ' ' ' ' ' ' ' ' ' '
Subscriptions receivable ' ' ' ' ' ' ' ' 28,506 ' ' ' ' ' ' ' ' ' '
Issuance of shares for settlement of accounts payable (in shares) ' ' ' ' ' ' ' ' ' ' ' ' 500,000 50,000 ' ' ' 500,000 '
Stock Issued During Period Value Employee Stock Purchase Trust For Services $ 32,091 $ 781,846 $ 95,140 ' ' ' ' ' ' ' ' $ 256 $ 1,591 $ 153 ' ' ' ' '
Stock Issued During Period Shares Employee Stock Purchase Trust For Services ' ' ' ' ' ' ' ' ' 1,390,625 ' 256,250 1,590,625 153,125 ' ' ' ' '
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' 13,070,000
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet55.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Detail Textuals 2) (USD $)
0 Months Ended 1 Months Ended 12 Months Ended
Sep. 08, 2010
Aug. 27, 2010
Dec. 31, 2013
Series of subscription agreements
Accredited investors
WarrantUnit
Stockholders Equity Note [Line Items] ' ' '
Sale of units, price per unit (in dollars per unit) ' ' 0.08
Number of units sold under private offering ' ' 13,125,002
Proceeds from issuance of private offering $ 26,989 $ 68,414 $ 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
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet56.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Detail Textuals 3) (USD $)
12 Months Ended 45 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Stockholders Equity Note [Line Items] ' ' ' '
Consulting fees $ 44,333 ' ' '
Deferred Cost 90,771 '   '   '  
Stock Issued During Period In Exchange For Reduction In Royalties, Shares 1,150,000 ' ' '
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 ' ' '
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 ' ' 5,250,000
Percentage of shares of common stock called by warrants 20.00% ' ' '
Exercise price of warrant 0.08 ' ' 0.08
Specified percentage of amount of funds solicited by placement agent equals to solicitation fee 5.00% ' ' '
------=_NextPart_063f9ed0_990e_4da5_9f7d_03da5764ad0a Content-Location: file:///C:/063f9ed0_990e_4da5_9f7d_03da5764ad0a/Worksheets/Sheet57.html Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii"
Stockholders' deficiency (Detail Textuals 4) (USD $)
12 Months Ended 45 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Dec. 31, 2013
Consulting agreement
Dec. 31, 2012
Consulting agreement
May 01, 2012
Consulting agreement
Stockholders Equity Note [Line Items] ' ' ' ' ' ' '
Stock agreed to issue a month pursuant to consulting agreement ' ' ' ' ' ' 20,000
Stock issued pursuant to consulting agreement ' ' ' ' 100,000 140,000 '
Expenses on shares issued to consulting agreement ' ' ' ' $ 142,557 $ 75,800 '