Leases

6 Months Ended

Jun. 30, 2022

19. Leases

We entered into the following lease during the six months ended June 30, 2022:

Burnaby lease expansion

On February 25, 2022, we entered into an agreement to amend our Burnaby lease ("expansion"), to expand the premises by an additional 1,994 square feet, commencing on June 1, 2022, for a period of two years and eleven months. The agreement provides the tenant with early access to the premises at least three months prior to the commencement date to conduct leasehold improvements. We obtained access to the premises on March 25, 2022 and consequently recognized a right-of-use asset and liability for the expansion as of June 30, 2022, of $146,822.

Total operating lease expense included in the condensed consolidated interim statements of operations and comprehensive loss is as follows:


	Three months ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operating lease expense	$	443,263	$	54,684	$	885,720	$	100,121
Short term lease expense		77,603		27,178		159,240		53,328
Variable and other lease expense		55,525		12,710		114,342		27,884
Total	$	576,391	$	94,572	$	1,159,302	$	181,333

We have elected the practical expedient in ASC 842 "Leases" to not capitalize any leases with initial terms of less than twelve months on our balance sheet and include them as short-term lease expense in the condensed consolidated interim statements of operations and comprehensive loss.

Future minimum payments under non-cancelable operating lease obligations were as follows as of June 30, 2022:


Remainder of 2022	$	558,495
2023		1,204,941
2024		1,208,381
2025		1,090,376
2026		937,583
Thereafter		2,851,409
Total minimum lease payments		7,851,185
Less: interest		(3,569,335	)
Present value of net minimum lease payments		4,281,850
Less: current portion of lease liabilities		(836,683	)
Total long-term lease liabilities	$	3,445,167