10.Lease liabilities

Lease obligations relate to the Company’s rent of warehouse spaces and kiosk locations to promote vehicle sales. The term of leases related to warehouse spaces expire on August 31, 2021 and August 1, 2022, respectively, with the Company holding an option to renew one of the warehouse leases for a further five years which has been included in the lease term. The Company entered into four long-term lease agreements in 2020 for the lease of kiosk locations in the USA which expire between November 30, 2021 to September 30, 2023. The Company entered into a long-term lease agreement in 2021 for its engineering center and head office in Canada which expires on February 28, 2026 with the Company holding an option to renew for a further five years.

The Company terminated one of its warehouse leases on January 31, 2020 without penalty for termination and derecognized the lease liability and net right-of-use asset of $33,442 and $42,765, respectively, on the effective date of termination.

The Company incurred $282,257 and $445,748 of lease expenses for the three and six months ended June 30, 2021 (June 30, 2020 - $11,399 and $36,086 for the three and six months) respectively, for short-term leases and low-value leases which are not included in the measurement of lease liabilities.

The following tables reconciles the change in the lease liabilities and discloses a maturity analysis of the lease liabilities for the six months ended June 30, 2021 and the year ended December 31, 2020:


Balance as at December 31, 2019	$	1,129,249
Lease addition		465,312
Lease termination		(33,442)
Accretion of lease liability		79,205
Repayment of principal and interest		(564,551)
Balance as at December 31, 2020	$	1,075,773
Lease addition		1,290,687
Accretion of lease liability		67,042
Repayment of principal and interest		(385,203)
Balance as at June 30, 2021	$	2,048,299


	Future				Present value of
	minimum					minimum
	lease				lease
At June 30, 2021	payments		Interest		payments
Less than one year	$	704,242	$	128,486	$	575,756
Between one and five years		1,044,866		311,758		733,108
More than five years		856,895		117,460		739,435
	$	2,606,003	$	557,704	$	2,048,299
Current portion of lease liabilities						575,756
Non-current portion of lease liabilities					$	1,472,543


	Future				Present value of
	minimum				minimum
	lease				lease
At December 31, 2020	payments		Interest		payments
Less than one year	$	641,448	$	65,216	$	576,232
Between one and five years		458,146		84,257		373,889
More than five years		133,118		7,466		125,652
	$	1,232,712	$	156,939		1,075,773
Current portion of lease liabilities						576,232
Non-current portion of lease liabilities					$	499,541