
		in thousands of dollars
		$
ASC transition as at December 1, 2019		681
Net amortization		(112)
Derecognition of Fairbanks warehouse lease		(93)
Balance as at November 30, 2020		476
Net amortization		(111)
Previously classified in fixed assets		156
Balance as at August 31, 2021		521

(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
	Nine months ended	Nine months ended
	August 31, 2021	August 31, 2020
	$	$
Operating lease costs	140	124
Variable lease costs	86	97
Total lease expense	226	221

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 August 31, 2021, the weighted-average remaining lease term is 2.75 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 nine months ended August 31, 2021 are as follows:

●

Cash paid for amounts included in the measurement of lease liabilities was $150,418.

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


		in thousands of dollars
		August 31, 2021
Fiscal year		$
2021		51
2022		207
2023		213
2024		36
Total undiscounted lease payments		507
Effect of discounting		(45)
Present value of lease payments recognized as lease liability		462