Related Party Transactions

9 Months Ended

Sep. 30, 2020

Related Party Transactions [Abstract]

Related Party Transactions [Text Block]

10. Related Party Transactions

For three and nine-month periods ended September 30, 2020, the Company incurred $33,791 ($45,000 CAD) and $99,779 ($135,000 CAD) (2019-$34,083; $45,000 CAD and $101,574; $135,000 CAD) respectively, in management fees expense with Travellers International Inc. ("Travellers"), an Ontario company controlled by a director and the president and chief executive officer (the "CEO"); $nil ($nil CAD) and $nil ($nil CAD) (2019-$34,083; $45,000 CAD and $101,574; $135,000 CAD) respectively, in management fees expense with Landfill Gas Canada Ltd. ("LFGC"), an Ontario company controlled by a former director and former chief executive officer and $18,021 ($24,000 CAD) and $53,215 ($72,000 CAD) (2019-$13,634; $18,000 CAD and $40,630; $54,000 CAD) respectively in management fees expense with the Company's chief financial officer (the "CFO"). As at September 30, 2020, unpaid remuneration and unpaid expenses in the amount of $344,359 ($459,329 CAD) (December 31, 2019-$324,303; $421,227 CAD) is included in accounts payable and $11,995 ($16,000 CAD) (December 31, 2019-$12,318; $16,000 CAD) is included in accrued liabilities in the interim condensed consolidated balance sheets.

In addition, during the three and nine-month periods ended September 30, 2020, the Company incurred interest expense of $1,771 ($2,368 CAD) and $4,399 ($5,952 CAD) (2019-$150; $180 CAD and $4,631; $6,155 CAD) respectively, on outstanding loans from Travellers and $nil ($nil CAD) (2019-$364; $469 CAD) and $3,711; $4,932 CAD respectively, on outstanding loans from the directors. As at September 30, 2020, interest of $4,462 ($5,952 CAD) (December 31, 2019-$nil; $nil CAD) on the loans outstanding to Travellers is included in accrued liabilities in the interim condensed consolidated balance sheets.

For the three and nine-month periods ended September 30, 2020, the Company incurred $21,198 ($28,284 CAD) and $57,618 ($77,957 CAD) (2019-$23,382; $30,934 CAD and $55,678; $ $74,001 CAD) respectively, in rent expense paid under a lease agreement with Haute Inc. ("Haute"), an Ontario company controlled by the CEO.

For those independent directors providing their services throughout 2019, the Company accrued directors' compensation totaling $3,000, based on the subsequent issuance of 20,000 common shares of the Company to each of the five directors that are expected to be issued subsequent to September 30, 2020. The directors' compensation was priced based on the trading price of the shares at the close of business on September 30, 2020 and will be adjusted based on the trading price of the shares, immediately prior to issuance. At a meeting of the Board of Directors (the "Board") on September 10, 2020, the Board approved the 2020 compensation to each independent board member in the amount of $18,743 ($25,000 CAD), effective January 1, 2020, to be paid in cash or shares of the Company, on or before December 31, 2020. For the services provided in the three and nine-month periods ended September 30, 2020, $56,637 and $57,070 (2019-($14,648) and ($1,948)) respectively. Also included in directors' compensation for the three and nine-month periods ended September 30, 2020, are the audit committee chairman's fees, in the amount of $751 ($1,000 CAD) and $2,217 ($3,000 CAD) (2019 $757; $1,000 CAD and $2,257; $3,000 CAD) respectively. As at September 30, 2020, outstanding directors' compensation of $1,694 ($2,260 CAD) (December 31, 2019-$3,480; $4,520 CAD) is included in accounts payable and $59,227 (December 31, 2019-$3,650) is included in accrued liabilities, in the interim condensed consolidated balance sheets.

Furthermore, for the three and nine-month periods ended September 30, 2020, the Company recognized management compensation expense of $nil and $nil (2019-$85,000 and $750,000) respectively, on the vesting of restricted stock units ("RSUs") granted in prior years to the CEO and the former chief executive officer. On January 10, 2020, the CEO's remaining RSUs determined to be valued at $1,000,000 based on private placement pricing at the time of the granting of the RSUs were exchanged into 1,000,000 common shares of the Company.