Commitments

9 Months Ended

Dec. 31, 2023

Commitments [Abstract]

Commitments

18. Commitments

(a) The Company’s subsidiaries have entered into two long-term operating leases for office premises in London, United Kingdom, and Shanghai, China. These lease assets are categorized as right of use assets under ASU No. 2016-02. The lease for the office premises in London was extended on December 26, 2023.

Long-term premises lease	Lease commencement	Lease expiry	Term (years)		Discount rate*
London, United Kingdom	December 26, 2023	December 25, 2026		3.00		8.25	%
Shanghai, China	March 1, 2020	May 31, 2025		5.25		4.65	%

* The Company determined the discount rate with reference to mortgages of similar tenure and terms.

Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating leases do not contain an option to extend or terminate the lease term at the Company’s discretion, therefore no probable renewal has been added to the expiry date when determining lease term. Operating lease expense is recognized on a straight-line basis over the lease term.

Lease cost for the three and nine months are summarized as follows:  

	Three Months Ended December 31, 2023 $		Three Months Ended December 31, 2022 $		Nine Months Ended December 31, 2023 $		Nine Months Ended December 31, 2022 $
Operating lease expense *		728,860		231,789		946,219		440,779

* Lease payments include maintenance, operating expense, and tax.

The Company has entered into premises lease agreements with minimum annual lease payments expected over the remaining three fiscal years of the lease as follows:  

	$
2024		103,167
2025		407,616
2026		352,025
Thereafter		176,014
Total future minimum lease payments		1,038,822
Imputed interest		(64,567	)
Operating lease obligations		974,255

(b) On December 2, 2020, the Company signed a Joint-Venture Agreement with Amr Khashoggi Trading Company Limited (“Amkest Group”) to incorporate a company in the Kingdom of Saudi Arabia for the sale of Pacific Green’s environmental technologies within the region. The Company holds 70% interest in the joint venture. The Company incorporated Pacific Green Technologies Arabia LLC on November 23, 2021.   Neither party had funded the joint venture at March 31, 2022 and there had been no revenue and expense associated with it for the year ending March 31, 2022. Since April 1, 2022 the Company has paid in share capital and intercompany loans and accrued interest amounting to $970,547 to fund operational expenses to December 31, 2023.