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SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended
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Sep. 30, 2015
SIGNIFICANT ACCOUNTING POLICIES [Text Block] |
2. | SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Liquidity The Company has incurred a net loss of $1,136,500 for the six months ended September 30, 2015 and, as of September 30, 2015, the Company has an accumulated deficit of $20,559,951 (March 31, 2015 - $19,423,451). Until the Company generates a level of revenue to support its cost structure, the Company expects to continue to incur substantial operating losses and net cash outflows. While the Company had cash and cash equivalents of $192,256 as of September 30, 2015 (March 31, 2015 - $418,893), management does not believe these resources will be sufficient to meet the Company’s operating and capital needs for the ensuing fiscal year. The Company intends to fund ongoing activities by utilizing current cash and cash equivalents and by raising additional capital through equity or debt financings. There can be no assurance that the Company will be successful in raising additional capital or that such capital, if available, will be on terms that are acceptable to the Company. If the Company is unable to raise sufficient additional capital, the Company may be compelled to reduce the scope of its operations and planned capital expenditure or sell certain assets, including intellectual property assets. This material uncertainty gives rise to substantial doubt about the Company’s ability to continue as a going concern. Fair Value of Financial Assets and Liabilities The Company’s financial instruments consist primarily of cash and cash equivalents and accounts payable and accrued liabilities. The book values of these instruments approximate their fair values due to the immediate or short-term nature of those instruments. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value; Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Cash and cash equivalents and short-term investment are measured using Level 1 inputs. The Company had certain Level 3 liabilities required to be recorded at fair value on a recurring basis in accordance with US GAAP as at September 30, 2015. As at September 30, 2015, the Company’s Level 3 liabilities consisted of the grant of share Purchase options to non-employees. The resulting Level 3 liabilities have no active market and are required to be measured at their fair value each reporting period based on information that is unobservable. A summary of the Company’s Level 3 liabilities for the periods ended September 30, 2015 and 2014 are as follows:
|  |  | Six months ended |  |  | Six months ended |
|  |  | September 30, 2015 |  |  | September 30, 2014 |
|  |  | (Restated – Note 11) |  |  | (Restated – Note 11) |
|  |  | $ |  |  | $ |
| Non-employee options |  |  |  |  |  |
| Beginning fair value |  | 1,581,444 |  |  | - |
| Issuance |  | - |  |  | 121,344 |
| Reallocation of vested non-employee options |  | 670,111 |  |  | 7,419 |
| Change in fair value |  | (1,889,646 | ) |  | 594,254 |
| Ending fair value of Level 3 liability |  | 361,909 |  |  | 723,017 |
Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). There were no assets or liabilities measured at fair value on a non-recurring basis during the periods ended September 30, 2015 and September 30, 2014. Basic and Diluted Income (Loss) per Share Earnings or loss per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) by the weighted-average of all potentially dilutive shares of common stock that were outstanding during the periods presented. The number of shares potentially issuable at September 30, 2015 upon the exercise or conversion of share purchase warrants, share purchase options and conversion of convertible debentures totaled 5,877,500. The number of shares potentially issuable at June 30, 2014 upon exercise or conversion of share purchase warrants and share purchase options and the conversion of convertible debentures totaled 9,130,000. The treasury stock method is used in calculating diluted EPS for potentially dilutive stock options and share purchase warrants, which assumes that any proceeds received from the exercise of in-the-money stock options and share purchase warrants, would be used to purchase common shares at the average market price for the period. EPS for convertible debt is calculated under the “if-converted” method. Under the if converted method, EPS is calculated as the more dilutive of EPS (i) including all interest (both cash interest and non-cash discount amortization) and excluding all shares underlying the Notes or; (ii) excluding all interest and costs directly related to the convertible debt (both cash interest and non-cash discount amortization) and including all shares underlying the convertible debt. The basic and diluted earnings per share for the three and six months ended September 30, 2015 and 2014 were calculated as follows:
|  | Three months ended |  |  | Six months ended |
|  | September 30, 2015 |  |  | September 30, 2014 |  |  | September 30, 2015 |  |  | September 30, 2014 |
Basic |  |  |  |  |  |  |  |  |  |  |  |
Numerator |  |  |  |  |  |  |  |  |  |  |  |
Net income (loss) | $ | 1,375,281 |  | $ | (3,756,127 | ) | $ | (1,136,500 | ) | $ | (5,320,080 | )
Denominator |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding |  | 64,408,500 |  |  | 63,104,788 |  |  | 64,055,508 |  |  | 51,025,119 |
Basic net income per share |  | $0.02 |  |  | $(0.06 | ) |  | $(0.02 | ) |  | $(0.10 | )
Diluted |  |  |  |  |  |  |  |  |  |  |  |
Numerator |  |  |  |  |  |  |  |  |  |  |  |
Net income for diluted income per share | $ | 1,375,281 |  | $ | (3,756,127 | ) | $ | (1,136,500 | ) | $ | (5,320,080 | )
Denominator |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding |  | 64,408,500 |  |  | 63,104,788 |  |  | 64,055,508 |  |  | 51,025,119 |
Potential share issuances |  |  |  |  |  |  |  |  |  |  |  |
Common share options |  | 2,135,104 |  |  | 2,855,914 |  |  | 2,652,859 |  |  | 2,814,267 |
Common share warrants |  | 2,577,769 |  |  | 5,031,974 |  |  | 4,483,136 |  |  | 5,002,389 |
Weighted average number of common shares outstanding used in computing diluted earnings per share |  | 66,543,604 |  |  | 65,960,702 |  |  | 71,191,503 |  |  | 58,841,775 |
Diluted earnings per share | $ | 0.02 |  | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.10 | )
Recent Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update No. 2015-03 Interest – Imputation of Interest (Subtopic 835 - 30). This guidance is to simplify the presentation of debt issuance costs by recognizing a debt liability in the balance sheet as a direct deduction from that debt liability consistent with the presentation of a debt discount. The amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company is currently evaluating the impact of adoption of this new accounting pronouncement on its financial statements.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18861-107790 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18780-107790 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18726-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18743-107790 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18854-107790 + Details
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