2012 Annual Report - Prometic - Life Science, Inc.

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Impairment of tangible and intangible assets Whether an asset is impaired requires management to determine whether there is an indication of impairment based on the consideration of external and internal indicators. If an indication of impairment exists, management must determine if the carrying value of the asset exceeds its recoverable amount. The Company’s Therapeutics segment has approximately 34% of the Company’s aggregate capital assets and licenses and patents (2011 - 36%) for which a nominal amount of revenue was recognized in 2012 and 2011. Supporting a judgment that the indicators of the impairment of these assets are not present is an assessment of detailed business plans and recent business development activity directly related to these assets. The Company rewiewed its previous assumptions in relation to the useful life of its assets and concluded that no changes were incurred. Estimates and assumptions Fair value of restricted stock units The fair value of the restricted stock units discussed in note 20 e) based on an estimation of the probability of the successful achievement of a number of performance conditions, as well as the timing of their achievement. The final expense is only determinable when the outcome will be known, which will be in 2013. Accounting for loan modifications As described in note 18 (b), when the terms of a loan are modified, it is often accounted for as a derecognition of the carrying value of the pre-modified loan and the recognition of a new loan at fair value. In the determination of fair value, the Company uses a discounted cash flow technique which includes inputs that are not based on observable market data and inputs that are derived from observable market data. In the case of its loan modifications, where available, the Company seeks comparable interest rates. If unavailable, it uses those considered appropriate for the risk profile of a company in the industry. 4. STANDARDS ISSUED BUT NOT YET EFFECTIVE Standards issued but not yet effective up to the date of issuance of the Company’s financial statements are listed below. This listing of standards and interpretations issued are those that the Company reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date. The Company intends to adopt these standards when they become effective. IAS 1 Financial Statement Presentation – Presentation of Items of Other Comprehensive Income (OCI) The amendments to IAS 1 change the grouping of items presented in OCI. Items that could be reclassified (or ‘recycled’) to profit or loss at a future point in time (for example, upon derecognition or settlement) would be presented separately from items that will never be reclassified. The amendment becomes effective for annual periods beginning on or after July 1, 2012. The Company is currently evaluating the potential impact of this new standard. IFRS 9 Financial Instruments: Classification and Measurement IFRS 9 as issued reflects the first phase of the IASB’s work on the replacement of IAS 39, “Financial Instruments: Recognition and Measurement” and applies to classification and measurement of financial assets and financial liabilities as defined in IAS 39. The standard is effective for annual periods beginning on or after January 1, 2015. In subsequent phases, the IASB will address hedge accounting and impairment of financial assets. The Company is currently evaluating the potential impact of this new standard. PROMETIC LIFE SCIENCES INC. IFRS 10 Consolidated Financial Statements IFRS 10 replaces the portion of IAS 27, “Consolidated and Separate Financial Statements”, that addresses the accounting for consolidated financial statements. It also includes the issues raised in SIC-12, “Consolidation - Special Purpose Entities”. IFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes introduced by IFRS 10 will require management to exercise significant judgment to determine which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements that were in IAS 27. This standard becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating the potential impact of this new standard. 34
IFRS 12 Disclosure of Involvement with Other Entities IFRS 12 includes all of the disclosures that were previously in IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in IAS 31, “Interests in Joint Ventures” and IAS 28, “Investments in Associates”. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and structured entities. A number of new disclosures are also required. This standard becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating the potential impact of this new standard. IFRS 13 Fair Value Measurement IFRS 13 establishes a single source of guidance under IFRS for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. This standard becomes effective for annual periods beginning on or after January 1, 2013. The Company is currently evaluating the potential impact of this new standard. 5. REVENUES Year ended Year ended December 31, 2012 December 31, 2011 Revenues from the sale of goods $ 11,548 $ 5,198 Revenues from the rendering of services 5,343 2,388 Licensing revenues 6,430 10,003 23,321 17,589 See note 29 for an analysis of revenues by major products and services. 6. ACCOUNTS RECEIVABLE 2012 2011 Trade $ 2,622 $ 207 Tax credits receivable (note 13) 1,893 1,102 Sales taxes receivable 149 87 Other 86 42 $ 4,750 $ 1,438 7. INVENTORIES 2012 2011 Raw materials $ 730 $ 611 Work in progress and finished goods 508 632 $ 1,238 $ 1,243 During the year ended December 31, 2012, total inventories in the amount of $ 5,326 ($1,854 for the year ended December 31, 2011) were recognized as cost of goods sold. PROMETIC LIFE SCIENCES INC. 35
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 and 32: NOTES TO CONSOLIDATED FINANCIAL STA
Page 33 and 34: The gain or loss arising on the dis
Page 35: n) Income taxes The Company uses th
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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