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CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Mar. 31, 2015

CORRECTION OF AN ERROR IN PREVIOUSLY ISSUED FINANCIAL STATEMENTS [Text Block]

12.

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company’s previously issued financial statements have been restated to reflect the correction of an error in the re-measurement of non-employee stock option awards that had yet to vest.

Previously, the Company had recorded the stock-based compensation for the fiscal year ended March 31, 2015 based on the fair value of the awards on their respective grant dates. Under the provisions of ASC 505-50, the Company is required to measure stock-based compensation for non-employees at the earlier of the performance commitment date or the date that the services have been completed. A performance commitment date exists only when the counterparty has sufficient disincentive not to complete. Otherwise, the Company is required to re-measure unvested non-employee options at their respective fair values until the services have been or once the options have vested. Under the terms of the Company’s stock option awards to non-employees, there were no performance disincentives. As a result the Company is required to re-measure its non-employee awards until they have vested. See Note 2 “Significant Accounting Policies - Stock Based Compensation”.

The correction of the error is presented in the Company’s consolidated financial statements for the year ended March 31, 2015 as follows:

		As Originally Reported			Adjustment			As Restated
Research & development expenses	$	3,828,775		$	671,298		$	4,500,073
Net loss for the year	$	8,894,555		$	943,762		$	9,838,317
Comprehensive loss for the year	$	9,866,195		$	943,762		$	10,809,957
Basic and diluted loss per share	$	(0.16	)	$	(0.01	)	$	(0.17	)
Additional paid-in capital		1,490,790		$	943,762		$	2,434,552
Accumulated deficit	$	(18,479,689	)	$	(943,762	)		(19,423,451	)
Consulting fees	$	1,085,606		$	272,464		$	1,358,070

This error correction had no impact on the cash flows of the Company. Accordingly, there is no restatement affecting the Company’s net cash used in operating activities or net change in cash or cash equivalents for the reporting period. This error correction also had no impact on the Company’s opening accumulated deficit figure for the year ended March 31, 2015. Accordingly, there is no restatement affecting the Company’s opening accumulated deficit for the year ended March 31, 2015.