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DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended
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Sep. 30, 2016
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION [Text Block] | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Helius Medical Technologies, Inc. (the “Company”) is engaged primarily in the medical technology industry focused on neurological wellness. The Company’s planned principal operations include the development, licensing and acquisition of unique and non-invasive platform technologies to amplify the brain’s ability to heal itself. To date, the Company has not generated any revenue. The Company was incorporated in British Columbia, Canada, on March 13, 2014. On May 28, 2014, the Company completed a continuation via a plan of arrangement whereby the Company moved from being a corporation governed by the British Columbia Corporations Act to a corporation governed by the Wyoming Business Corporations Act. The Company’s head office is located in Newtown, Pennsylvania. The Company has two wholly-owned subsidiaries, Neurohabilitation Corporation (“Neuro”) and Helius Medical Technologies (Canada), Inc. (“Helius Canada”). The Company is currently listed on the Toronto Stock Exchange (the “TSX”). The Company began trading on the Canadian Securities Exchange on June 23, 2014, under the ticker symbol “HSM”, and subsequently moved to the TSX on April 18, 2016. The Company also began trading on the OTCQB under the ticker symbol “HSDT” on February 10, 2015. The financial information is presented in United States Dollars. Going Concern As of September 30, 2016, the Company’s cash and cash equivalents were $6,172,564. During the six months ended September 30, 2016, the Company incurred a net loss of $6,071,053 and as of September 30, 2016 it’s accumulated deficit was $32,376,316. The Company expects to continue to incur operating losses and net cash outflows until such time as it generates a level of revenue to support its cost structure. There is no assurance that profitable operations will ever be achieved, and, if achieved, will be sustained on a continuing basis. These factors raise substantial doubt about the Company’s ability to continue as a going concern. 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. Revision of Prior Period Financial Statements In the fourth quarter of fiscal year 2016, the Company revised and corrected the accounting for stock compensation expense related to certain non-employee awards for prior interim periods in fiscal year 2016. The Company evaluated the materiality of this revision and concluded that it was not material to any of the previously issued financial statements. However, had this not been revised, the accounting may have resulted in a material misstatement to the financial statements for the full year fiscal 2016. Accordingly, the Company revised previously reported periods included in Form 10-Q for the three-month periods ended June 30, 2015 and December 31, 2015. The Company will revise all other previously reported periods as such financial information is included in future filings. The effects of this revision on the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (loss) were as follows:
|  | Three Months Ended September 30, 2015 |  |  | Six Months Ended September 30, 2015 |
|  | As Previously |  |  |  |  |  | As |  |  | As Previously |  |  |  |  |  | As |
|  | Reported |  |  | Adjustment |  |  | Revised |  |  | Reported |  |  | Adjustment |  |  | Revised |
Research and development | $ | 1,531 |  | $ | - |  | $ | 1,531 |  | $ | 1,372,457 |  | $ | 149,898 |  | $ | 1,522,355 |
Loss from operations | $ | (725,672 | ) | $ | - |  | $ | (725,672 | ) | $ | (3,561,447 | ) | $ | (149,898 | ) | $ | (3,711,345 | )
Net income (loss) | $ | 1,785,412 |  | $ | - |  | $ | 1,785,412 |  | $ | (619,057 | ) | $ | (149,898 | ) | $ | (768,955 | )
Net income (loss) per share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic and diluted | $ | 0.03 |  | $ | - |  | $ | 0.03 |  | $ | (0.01 | ) | $ | - |  | $ | (0.01 | )
Total comprehensive income (loss) | $ | 1,217,893 |  | $ | - |  | $ | 1,217,893 |  | $ | (1,145,950 | ) | $ | (149,898 | ) | $ | (1,295,848 | )

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