
		in thousands of dollars
		$
ASC 842 transition as at December 1, 2019		681
Amortization		(162)
Lease accretion		50
Derecognition of Fairbanks warehouse lease		(93)
		476

The pre-transition rent deposit of approximately $114,000 was transferred to the Right-of-use asset upon adoption of ASC 842 on December 1, 2019 and is included in the opening balance of approximately $681,000.

(b)	Lease liabilities

The Company’s lease arrangements primarily consist of an operating lease for our office space ending in June 2024. There are no extension options.

Total lease expense recorded within general and administrative expenses was comprised of the following components:


		in thousands of dollars
		Year ended
		November 30, 2020
		$
Operating lease costs		162
Variable lease costs		131
Total lease expense		293

Variable lease costs consist primarily of the Company’s portion of operating costs associated with the office space lease as the Company elected to apply the practical expedient not to separate lease and non-lease components.

As of November 30, 2020, the remaining lease term was 3.67 years and the discount rate is 8%. Significant judgment was used in the determination of the incremental borrowing rate which included estimating the Company’s credit rating.

Supplemental cash and non-cash information relating to our leases during the year ended November 30, 2020 are as follows:

●

Cash paid for amounts included in the measurement of lease liabilities was $188,811.

●

No cash was paid upon termination of a lease for office and warehouse space and reassignment to Ambler Metals LLC that resulted in the derecognition of the right-of-use asset of $92,974 and the operating lease liability of $93,006.

Future minimum payments relating to the lease recognized in our balance sheet as of November 30, 2020 are as follows:


		in thousands of dollars
		November 30, 2020
Fiscal year		$
2021		196
2022		202
2023		207
2024		123
Total undiscounted lease payments		728
Effect of discounting		(162)
Present value of lease payments recognized as lease liability		566