OPERATING LEASE RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS

9 Months Ended

Dec. 31, 2024

Operating Lease Right-of-use Assets And Lease Obligations

OPERATING LEASE RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS

10. OPERATING LEASE RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS

The Company has one operating lease primarily for office and administration.

During December 2021, the Company entered into a new lease agreement. The Company paid $85,000 deposit that would be returned at the end of the lease. In December 2022, the Company started a new lease with an additional suite in the same premise as the existing lease.

When measuring the lease obligations, the Company discounted lease payments using its incremental borrowing rate. The weighted-average-rate applied is 11.4%.

	Fiscal Year 2024			Fiscal Year 2023
Right of Use Asset	$			$
Beginning balance at March 31		1,221,593			1,587,492
New leases		—			—
Amortization		(302,199	)		(271,357	)
Ending balance at December 31		919,394			1,316,135

	2024			2023
Lease Liability	$			$
Beginning balance at March 31		1,386,486			1,722,095
New leases		—			—
Repayment and interest accretion, net		(335,166	)		(261,072	)
Ending balance at December 31		1,051,320			1,461,023

	December 31, 2024		March 31, 2024
Lease Liability	$		$
Current portion of operating lease liability		511,922		457,371
Noncurrent portion of operating lease liability		539,398		929,115

The operating lease expense was $437,466 for the nine months ended December 31, 2024 (2023: $420,251) and included in the selling, general and administrative expenses. Operating cash flows from operating leases amounted to $437,466 and $394,214 during the nine months ended December 31, 2024 and December 31, 2023, respectively.

The following table represents the contractual undiscounted cash flows for lease obligations as at December 31, 2024:

Calendar year	$
2024		552,293
2025		600,288
2026		565,359
Total undiscounted lease liability		1,717,940
Less imputed interest		666,620
Total		1,051,320