Commitments, Significant Contracts and Contingencies |
17. Commitments, Significant Contracts and Contingencies
Management and Service Agreements
As at August 31, 2020, the Company is party to the following contractual commitments:
Party |
|
Monthly Commitment |
|
Expiry Date |
|
C.A.B Financial Services |
|
CAD $29,706 |
|
January 1, 2022 |
|
Docherty Management Ltd. |
|
CAD $25,609 |
|
January 1, 2022 |
|
M&E Services Ltd. |
|
CAD $13,997 |
|
June 1, 2021 |
|
Corporate Development |
|
CAD $1,500 |
|
Month to Month |
|
Office Management |
|
CAD $10,800 |
|
August 15, 2022 |
|
Research & Development |
|
CAD $3,854 |
|
Month to Month |
|
Office operating lease (1) |
|
CAD $4,823 |
|
November 15, 2023 |
|
Right of Use Assets - Operating Lease |
(1) |
Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. In addition to minimum lease payments, the lease requires us to pay property taxes and operating costs which are subject to annual adjustments. |
Right of use assets - operating leases: |
|
$ |
|
September 1, 2019 |
|
|
160,289 |
|
Amortization |
|
|
(33,369 |
) |
Total lease assets |
|
|
126,920 |
|
Liabilities: |
|
|
|
|
September 1, 2019 |
|
|
158,773 |
|
Lease payments |
|
|
(43,764 |
) |
Interest accretion |
|
|
10,423 |
|
Total lease liabilities |
|
|
125,431 |
|
|
|
|
|
|
Operating lease cost as at August 31, 2020 |
|
$ |
126,920 |
|
Operating cash flows for lease |
|
$ |
43,764 |
|
Remaining lease term |
|
3.1 Years |
|
Discount rate |
|
|
7.25 |
% |
Pursuant to the terms of the Company’s lease agreements in effect at August 31, 2020, the following table summarizes the Company’s maturities of operating lease liabilities as of August 31, 2020:
2021 |
|
|
43,950 |
|
2022 |
|
|
44,599 |
|
2023 |
|
|
44,815 |
|
2024 |
|
|
7,469 |
|
Thereafter |
|
|
— |
|
Total lease payments |
|
|
140,832 |
|
Less: imputed interest |
|
|
(15,401 |
) |
Present value of operating lease liabilities |
|
|
125,431 |
|
Less: current obligations under leases |
|
|
(36,038 |
) |
Total |
|
|
89,393 |
|
|