Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Significant Accounting Policies

Note 2 - Significant Accounting Policies
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
Significant accounting policies
Basis of consolidation:
These condensed consolidated interim financial statements include the accounts of its subsidiaries. All intercompany transactions, balances, revenue and expenses are eliminated on consolidation.
Basis of presentation:
The accompanying unaudited condensed consolidated interim financial statements have been prepared in conformity with generally accepted accounting principles in the United States, or GAAP, for the interim financial information and the rules and regulations of the Securities and Exchange Commission, or SEC, related to quarterly reports on Form
-Q. Accordingly, they do
include all of the information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form
-K, or Annual Report, filed with the SEC on
March 12, 2019.
In the opinion of management, these condensed consolidated interim financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The results of operations for the interim periods shown in this report are
necessarily indicative of the results that
be expected for any future period, including the full year. 
Significant accounting policies, estimates and judgments:
During the 
months ended 
June 30, 2019, 
there have been 
 changes to our significant accounting policies as described in our Annual Report on Form 
-K for the fiscal year ended 
December 31, 2018, 
except as described below for Lease accounting.
The preparation of the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. Actual outcomes could differ from those estimates. The condensed consolidated interim financial statements include estimates, which, by their nature, are uncertain.
The impacts of such estimates are pervasive throughout the condensed consolidated interim financial statements and
require accounting adjustments based on future occurrences.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.
Foreign currency:
The functional and presentation currency of the Company is the US dollar.
January 1, 2019,
the Company adopted Financial Accounting Standards Board, or FASB, standard ASU
“Leases (Topic
)”. The Company’s operating leases of tangible property with terms greater than
months are recognized as right of use assets, which represents the lessee’s right to use, or control the use of, a specified asset for the lease term, and a corresponding lease liability, which represents the lessee’s obligation to make lease payments under a lease, measured on a discounted basis. The Company adopted the new standard using the alternative transition method, which permits a company to use its effective date as the date of initial application without restating comparative period financial statements. Landlord inducements in the form of free rent periods are netted against lease payments to the landlord in measuring right-of-use assets and lease liabilities.
Impact of adoption:
As a result of adopting Topic
we recorded as of
January 1, 2019,
a right of use asset of approximately
million, and a lease liability of approximately
million. Upon adoption, landlord inducements of approximately
thousand were de-recognized, and a corresponding adjustment was made to right-of-use assets.
Concentration of risk:
The Company is subject to credit risk from the Company’s cash and cash equivalents and investments. The carrying amount of the financial assets represents the maximum credit exposure. The Company manages credit risk associated with its cash and cash equivalents and investments by maintaining minimum standards of
-low or A-low investments and the Company invests only in highly rated Canadian corporations which are capable of prompt liquidation.