Commitments

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments [Text Block]

21. Commitments

a) A renewed consulting agreement came into effect on January 1, 2020 for a period of twelve months, for the President, who also assumed the role of CEO of the Company. The monthly fee is unchanged at $11,549 ($15,000 CAD). In addition, a renewed consulting agreement also came into effect on January 1, 2020 for a period of twelve months, for the CFO. The monthly fee is $6,159 ($8,000 CAD). The future minimum commitments under these consulting agreements, are as follows:

 

For the year ending December 31, 2020 $ 212,496

 

b) The Company has agreed to lease its office premises from Haute on a month-to-month basis at the same monthly amount of $4,619 ($6,000 CAD). The Company is also responsible for all expenses and outlays in connection with its occupancy of the leased premises, including, but not limited to utilities, realty taxes and maintenance.

 

c) The Company was assigned the land lease on the purchase of certain assets of Astoria. The land lease, which comprises 13.88 acres in Roslin, Ontario, Canada, has a term expiring March 31, 2034. The basic monthly rent on the net lease is $2,310 ($3,000 CAD) and is subject to adjustment based on the consumer price index as published by Statistics Canada ("CPI"). To date, no adjustment for CPI has been charged. The Company is also responsible for any property taxes, maintenance, insurance and utilities. In addition, the Company has the right to extend the lease for five further terms of five years each and one further term of five years less one day. As the Company acquired the business of 1684567, the previous landlord, there are no future commitments for this lease. The Company was recently informed that, through a special provision of the site plan agreement with the City of Belleville (the "City"), Ontario, that it is required to fund road maintenance required by the City through to September 30, 2025 at an annual rate of $7,699 ($10,000 CAD). The future minimum commitment is as follows:

For the year ending December 31, 2020	$	7,699
For the year ending December 31, 2021		7,699
For the year ending December 31, 2022		7,699
For the year ending December 31, 2023		7,699
For the year ending December 31, 2024		7,699
Thereafter		7,699
	$	46,194

e) PACE has provided the Company a letter of credit in favor of the Ministry of the Environment, Conservation and Parks (the "MOECP"), (formerly the Ministry of the Environment and Climate Change), in the amount of $213,132 ($276,831 CAD) and, as security, has registered a charge of lease over the premises, located at 704 Phillipston Road, Roslin, Ontario, Canada. The Company is required to provide for environmental remediation and clean-up costs for its organic composting facility. The letter of credit is a requirement of the MOECP and is in connection with the financial assurance provided by the Company for it to be in compliance with the MOECPs environmental objectives. The MOECP regularly evaluates the Company's organic composting facility to ensure compliance is adhered to and the letter of credit is subject to change by the MOECP. Since the fair value of the environmental remediation costs cannot be determined at this time, no estimate of such costs has been recorded in the accounts. As of December 31, 2019, the MOECC has not drawn on the letter of credit. The Company renewed the letter of credit to June 30, 2020, as noted in note 24(g), subsequent events.