3 Leases

On June 3, 2019, the Company entered into a new lease arrangement for a three-year term for its office located in Charlotte, NC. The Company recognized the operating lease right-of-use asset and operating lease liabilities at the lease commencement date on September 10, 2019. This resulted in an incremental borrowing rate of 8%. Lease expenses are recognized on a straight-line basis over the lease term, which is accomplished by increasing the amortization of the right-of-use asset as interest expense on the lease liability declines over the lease term. The company was not reasonably certain of renewing the lease following the initial term and recognized the right-of-use asset and operating lease liabilities over the 36-month period ending September 30, 2022.

The Company's two operating leases right-of-use assets are as follows as at December 31, 2019:


Right-of-use adoption date of January 1, 2019	$	321
New operating lease right-of-use asset		401
Amortization of right-of-use asset during the year ending December 31, 2019		(198)
	$	524

Operating lease expenses of $277 are included in general and administrative operating expenses in the consolidated statement loss and comprehensive loss, and within operating activities in the statement of cash flows for the twelve-month period ended December 31, 2019, and are comprised of two operating lease right-of-use assets and one operating lease of less than 12 months.

The following table summarizes the future minimum lease payments of right-of-use assets operating lease as at December 31, 2019:


January 1, 2020 to December 31, 2020	$	354
January 1, 2021 to December 31, 2021		117
January 1, 2022 to December 31, 2022		80
		551
Less interest		(37)
	$	514

As at December 31, 2018 in accordance with ASC 840, the Company had a lease commitment for its headquarters located in Montréal (Québec), Canada, expiring on November 30, 2020 with an option to renew for an additional three years and a commitment for its office located in Charlotte, North Carolina, which had a termination date of July 31, 2019. The minimum lease payments as at December 31, 2018 were as follows:


	Lease		Lease
	operating		base rent		Total lease
	expenses		expenses		commitment
2019	$	86	$	130	$	216
2020		79		85		164
	$	165	$	215	$	380

Total rental expense under operating leases for the year ended December 31, 2018 was $232.