Obligations under Capital Lease

12 Months Ended

Dec. 31, 2018

11. Obligations under Capital Lease

2018

2017

(a)

(b)

Total

Obligations under Capital Lease

147,667

141,041

288,708

219,784

Less: current portion

(43,723

)

(37,386

)

(81,109

)

(59,204

)

Obligations under Capital Lease

103,944

103,655

207,599

160,580

(a)	The lease agreement for certain equipment for the Company’s organic composting facility at a cost of $210,114 ($286,650 CAD), is payable in monthly blended installments of principal and interest of $4,281 ($5,840 CAD), plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of $20,964 ($28,600 CAD), plus applicable harmonized sales taxes on October 31, 2021. The lease agreement bears interest at the rate of 5.982% annually, compounded monthly, due September 30, 2021.

(b)	The lease for certain equipment for the Company’s organic composting facility at a cost of $181,381 ($247,450 CAD), is payable in monthly blended installments of principal and interest of $3,751 ($5,118 CAD), plus applicable harmonized sales taxes for a period of forty-six months plus the first two monthly blended installments of $7,330 ($10,000 CAD) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of $ 18,090 ($24,680 CAD) plus applicable harmonized sales taxes on February 27, 2022. The leasing agreement bears interest at the rate of 6.15% annually, compounded monthly, due January 27, 2022.

The lease liabilities are secured by the equipment under capital lease as described in note 8.

Minimum lease payments are as follows:

During the year, $19,537 ($25,304 CAD) (2017-$2,200; $2,857 CAD) in interest was charged.