Leases

3 Months Ended

Feb. 28, 2025

Leases

Leases

5)    Leases

(a) Right-of-use asset

	in thousands of dollars
	$
Balance as at November 30, 2024	155
Net amortization	(10)
Balance as at February 28, 2025	145

(b) Lease liabilities

The Company’s lease arrangement consists of an operating lease for the corporate office.  On July 1, 2024, the Company entered into a four-year lease for office space.  The lease has no extension option.  The lease payment is CDN$9,500 per month and the lease expires in June 2028.

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

	in thousands of dollars
	Three months ended	Three months ended
	February 28, 2025	February 29, 2024
	$	$
Operating lease costs	13	49
Variable lease costs	8	58
Total lease expense	21	107

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 February 28, 2025, the weighted-average remaining lease term is 3.2 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 flow information relating to our leases during the three-month period ending February 28, 2025 is as follows:

● Cash paid for amounts included in the measurement of lease liabilities was $11,708.

Future minimum payments relating to the lease recognized in our balance sheet as of February 28, 2025 are as follows:

	in thousands of dollars
	February 28, 2025
Fiscal year	$
2025	35
2026	47
2027	48
2028	24
2029	—
Total undiscounted lease payments	154
Effect of discounting	(20)
Present value of lease payments recognized as lease liability	134
Less: current portion of lease liability	(36)
Long-term portion of lease liability	98