NOTE 18 LEASE LIABILITY

12 Months Ended

Dec. 31, 2020

NOTE 18 LEASE LIABILITY

LEASE LIABILITY

18. LEASE LIABILITY

	Empower clinics			Sun Valley clinics			CBD extraction facility			Kai Medical			Lawrence Park & Atkinson		Total
	$			$			$			$			$		$
Balance, December 31, 2018		-			-			-			-			-		-
Adoption of IFRS 16		138,444			-			-			-			-		138,444
Additions		23,006			431,544			406,263			-			-		860,813
Interest expense		4,318			13,404			7,955			-			-		25,677
Payments		(64,681	)		(112,798	)		(26,233	)		-			-		(203,712	)
Termination of leases		(86,326	)		-			-			-			-		(86,326	)
Balance, December 31, 2019		14,761			332,150			387,985			-			-		734,896
Acquisition of Kai Medical		-			-			-			294,669			-		294,669
Acquisition of LP&A		-			-			-			-			45,595		45,595
Interest expense		568			15,669			11,103			3,969			-		31,309
Payments		(12,270	)		(173,139	)		(15,405	)		(25,586	)		-		(226,400	)
Termination of leases		-			-			(383,683	)		-			-		(383,683	)
Balance, December 31, 2020		3,059			174,680			-			273,052			45,595		496,386
Less: current portion of lease liability		3,059			108,645			-			87,452			41,982		241,138
Lease liability		-			66,035			-			185,600			3,613		255,248

The Company defaulted on the right-of-use CBD extraction facility and as a result, derecognized the right of us asset associated with the CBD extraction facility (note 11). In connection with the previous, the Company extinguished the associated lease liability in the amount of $383,683.

On October 5, 2020, through the acquisition of Kai Medical, the Company assumed a leased premises and the associated lease liability with a fair value of $294,669. From the date of acquisition to December 31, 2020, the total interest expense and payments were $3,969 and $25,586, respectively.

During the year ended December 31, 2020, the Company recognized an expense of $46,885 (December 21, 2019 - $92,349) with respect to short-term and low value leases.