
		in thousands of dollars
		$
ASC transition as at December 1, 2019		872
Net amortization		(147)
Derecognition of Fairbanks warehouse lease		(93)
Balance as at November 30, 2020		632
Net amortization		(73)
Balance as at May 31, 2021		559

(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
	Six months ended	Six months ended
	May 31, 2021	May 31, 2020
	$	$
Operating lease costs	93	86
Variable lease costs	50	64
Total lease expense	143	150

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 May 31, 2021, the weighted-average remaining lease term is 3 years and the weighted-average 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 six months ended May 31, 2021 are as follows:

●

Cash paid for amounts included in the measurement of lease liabilities was $98,359.

Future minimum payments relating to the lease recognized in our balance sheet as of May 31, 2021 are as follows:


		in thousands of dollars
		May 31, 2021
Fiscal year		$
2021		106
2022		217
2023		223
2024		36
Total undiscounted lease payments		582
Effect of discounting		(56)
Present value of lease payments recognized as lease liability		526