2012 Annual Report - Prometic - Life Science, Inc.

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After application of the equity method, the Company determines whether it is necessary to recognise an additional impairment loss on its investment in its associate. The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in the ‘share of profit of an associate’ in the consolidated statement of operations. Upon loss of significant influence over the associate, the Company measures and recognises any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss. f) Financial instruments The classification and measurement of the Company’s financial instruments are as follows: Financial assets at fair value through profit and loss Cash and restricted cash are respectively classified and designated as financial assets at fair value through profit and loss. They are measured at fair value and changes in fair value are recognized in the consolidated statements of operations and comprehensive loss. Loans and receivables Accounts receivable and share subscription receivable, excluding tax credits receivable and sales taxes receivable, are classified as loans and receivables. They are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method. Available-for-sale assets The convertible preferred shares of AM-Pharma Holding B.V., a private company, are classified as available-for-sale and are measured at cost. Financial liabilities Bank and other loans, trade and other payables, promissory notes from shareholders, repayable government grants and advance on revenues from a supply agreement are classified as other financial liabilities. They are measured at amortized cost using the effective interest method. Long-term debt provided by shareholders, finance leases obligations and advance on revenues from a supply agreement are classified as other financial liabilities. They are measured at amortized cost, using the effective interest method. Financing costs are applied against long-term debt. Impairment of investments When, in management’s opinion, there has been a significant or prolonged decline in value of an investment, the investment is written down to recognize the loss. In determining the estimated realizable value of its investment, management relies on its judgment and knowledge of each investment as well as on assumptions about general business and economic conditions that prevail or are expected to prevail. g) Inventories Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realizable value. Cost is determined on a first in, first out basis. h) Capital assets Capital assets are recorded at cost less any government assistance, accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as described below. PROMETIC LIFE SCIENCES INC. Asset Leasehold improvements Equipment and tools Office equipment and furniture Computer equipment Rate/period Lease term of 2.5 to 15 years 5 and 10 years 5 years 5 years The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. 30
The gain or loss arising on the disposal or retirement of a capital asset is determined as the difference between the sales proceeds and its carrying amount and is recognized in profit or loss. i) Government assistance Government assistance programs, including investment tax credits on research and development expenses, are reflected as reductions to the cost of the assets or to the expenses to which they relate and are recognized when there is reasonable assurance that the assistance will be received and all attached conditions are complied with. Where government assistance is received in the form of a repayable working capital grant, it is recorded as a liability. j) Licenses and patents Licenses and patents were acquired separately and include acquired rights as well as licensing fees for product manufacturing and marketing. They are carried at cost less accumulated amortization. Amortization is calculated over the estimated useful lives of the licenses and patents acquired using the straight-line method over a period of 12-20 years and are assessed for impairment at each reporting date when there are indicators of impairment present. The estimated useful lives and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimates being accounted for on a prospective basis. The amortization expense is recognized in the consolidated statements of operations and comprehensive loss in the expense category consistent with the function of the intangible assets. Expenditure on research activities is recognized as an expense in the period during which it is incurred. An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following have been demonstrated: • the technical feasibility of completing the intangible asset so that it will be available for use or sale; • the intention to complete the intangible asset and use or sell it; • the ability to use or sell the intangible asset; • how the intangible asset will generate probable future economic benefits; • the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and • The ability to measure reliably the expenditure attributable to the intangible asset during its development. To date, the Company has not deferred any development costs. k) Impairment of tangible and intangible assets At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) (i.e. the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets, groups of assets or CGUs) to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, the corporate assets are also allocated to individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation basis can be identified. The recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognized when the carrying amount of an asset or a CGU exceeds its recoverable amount by the amount of this excess. An impairment loss is recognized immediately in profit or loss in the period during which the loss is incurred. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the revised estimate of its recoverable amount; on reversal of an impairment loss, the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or CGU in prior periods. A reversal of an impairment loss is recognized immediately in profit or loss. PROMETIC LIFE SCIENCES INC. 31
Page 1 and 2: ANNUAL REPORT 2012 We believe in ou
Page 3 and 4: We have + 14 + 28 applications and
Page 5 and 6: WHO WE ARE ProMetic Life Sciences I
Page 7 and 8: On May 15, 2012, ProMetic received
Page 9 and 10: alliance for the manufacturing of o
Page 11 and 12: PROMETIC’S BUSINESS IS ORGANIZED
Page 17 and 18: MANAGEMENT’S DISCUSSION & ANALYSI
Page 19 and 20: Although the Company achieved its f
Page 21 and 22: During the year ended December 31,
Page 23 and 24: FOURTH QUARTER The following inform
Page 25 and 26: Following a consulting agreement en
Page 27 and 28: CONSOLIDATED STATEMENTS OF FINANCIA
Page 29 and 30: CONSOLIDATED STATEMENTS OF CHANGES
Page 31: NOTES TO CONSOLIDATED FINANCIAL STA
Page 35 and 36: n) Income taxes The Company uses th
Page 37 and 38: IFRS 12 Disclosure of Involvement w
Page 39 and 40: 11. CAPITAL ASSETS Leasehold Equipm
Page 41 and 42: 13. BANK AND OTHER LOANS 2012 2011
Page 43 and 44: (b) Other loans: 1) Loan for an ini
Page 45 and 46: purposes. Consequently, the loans w
Page 47 and 48: 2012 During the year ended December
Page 49 and 50: d) Stock-based compensation: The Co
Page 51 and 52: 22. CAPITAL DISCLOSURES December 31
Page 53 and 54: Fair value hierarchy Financial inst
Page 55 and 56: December 31, 2012 December 31, 2011
Page 57 and 58: The Company has tax losses which ar
Page 59 and 60: d) Acquisition of capital assets an
Page 61 and 62: On March 7, 2013, the share purchas
Page 63 and 64: CORPORATE INFORMATION HEADQUARTERS

2012 Annual Report - Prometic - Life Science, Inc.

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