Net investment in sublease

6 Months Ended

Jun. 30, 2021

7.Net investment in sublease

The Company entered into an agreement to sublease its office space in Los Angeles, USA, with effect from February 1, 2020. The Company has classified the sublease as a finance lease as the term of the sublease is for major part of the economic life of the right-of-use asset arising from the head lease. At the commencement date of the sublease, the Company derecognized the right-of-use asset relating to the head lease that it transferred to the sub-lessee and recognized the net investment in the sub-lease. The term of the sublease expires on August 21, 2021.

As at June 30, 2021 and December 31, 2020, the contractual undiscounted cash flows related to subleases were as follows:


	Future				Present value of
	minimum				minimum lease
	lease payments				payments
June 30, 2021	receivable		Interest income		receivable
Less than one year	$	10,000	$	124	$	9,876
Between one and five years		—		—		—
Net investment in sublease	$	10,000	$	124	$	9,876


	Future				Present value
	minimum				of minimum
	lease				lease
	payments		Interest		payments
December 31, 2020	receivable		income		receivable
Less than one year	$	40,000	$	1,459	$	38,541
Between one and five years		—		—		—
Net investment in sublease	$	40,000	$	1,459	$	38,541