The assets’ residual values and useful
lives are reviewed, and adjusted if appropriate, at each balance sheet date. Where an asset’s carrying amount is greater
than its estimated recoverable amount, it is written down to its recoverable amount.
Gains and losses on disposals are determined
by comparing the disposal proceeds with the carrying amount and are included in the statements of loss.
Fair value of financial assets and liabilities
The Company’s financial assets and
liabilities are comprised of receivables, cash and cash equivalents, trade payables and debt obligations. The fair value of these
financial instruments approximate their respective carrying values due to the short term maturity of these instruments and are
held at their amortized cost in accordance with IFRS 9.
Receivables are non-derivative financial
assets with fixed payments that are not quoted in an active market. They arise when the Company provides money, goods or services
directly to a debtor with no intention of trading the receivable. They are included in current assets, except for those with maturities
greater than 12 months after the balance sheet date, which are classified as long-term assets. Receivables are recognized at their
billing value. An allowance for doubtful accounts is recorded for potential estimated losses when there is evidence of the debtor’s
inability to make required payments and the Company assesses on a forward looking basis the expected credit losses associated with
these receivables held at amortized cost.
Short-term financial assets
Short-term financial assets are held with
external financial institutions and comprise fixed-term deposits with maturities ranging from more than 3 until 12 months in duration.
Cash and cash equivalents
Cash and cash equivalents include deposits
held with external financial institutions and cash on hand. All cash and cash equivalents are either in cash or in deposits with
original duration of less than 3 months.
The Company assesses at each period whether
there is objective evidence that financial assets are impaired.
Trade payables are amounts due to third
parties in the ordinary course of business.
The Company’s debt obligations relate
to its agreement with a third party and are measured as of the period end date based on the repayment terms when originated.
Share capital and public offerings
Ordinary (Common) Shares are classified
as equity, as were all Preferred Shares previously outstanding prior to the IPO. Expenses directly attributable to the issuance
of new shares are shown in equity as a deduction, net of tax, from the proceeds. See Note 8, “Share Capital.”