Leases

9 Months Ended

Aug. 31, 2024

Leases

Leases

5)    Leases

(a) Right-of-use asset

	in thousands of dollars
	$
Balance as at November 30, 2023	113
Net amortization for lease ended June 30, 2024	(113)
ROU assets recognized for lease commenced July 1, 2024	170
Net amortization for lease commenced July 1, 2024	(6)
Balance as at August 31, 2024	164

The Company’s previous office lease ended on June 30, 2024.  The Company entered into a new office lease commencing on July 1, 2024, with a 4-year term ending in June 2028, and with no renewal option.  During the quarter ended August 31, 2024, the Company recognized a ROU asset of $170,000 for the new office lease.

(b) Lease liabilities

The Company’s lease arrangement consists of an operating lease for our office space ending in June 2028. 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, 2024	August 31, 2023
	$	$
Operating lease costs	122	140
Variable lease costs	103	103
Total lease expense	225	243

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 at August 31, 2024, the weighted-average remaining lease term is 3.8 years and the weighted-average discount rate is 9%. 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-month period ending August 31, 2024 are as follows:

● Cash paid for amounts included in the measurement of lease liabilities was $45,561, of which $33,159 related to the office lease that expired on June 30, 2024 and $12,402 related to the new office lease that commenced on July 1, 2024.

Future minimum payments relating to the lease recognized in our balance sheet as of August 31, 2024 are as follows:

	in thousands of dollars
	August 31, 2024
Fiscal year	$
2024	13
2025	50
2026	51
2027	51
2028	30
Total undiscounted lease payments	195
Effect of discounting	(33)
Present value of lease payments recognized as lease liability	162