Obligations under Capital Lease

9 Months Ended

Sep. 30, 2020

Obligations Under Capital Lease [Abstract]

Obligations under Capital Lease [Text Block]

13. Obligations under Capital Lease

											September 30,			December 31,
											2020			2019
		(a)			(b)			(c)			Total			Total
Obligations under Capital Lease	$	78,966		$	79,190		$	251,504		$	409,660		$	218,069
Less: current portion		(78,966	)		(79,190	)		(251,504	)		(409,660	)		(218,069	)
Long-term portion	$	—		$	—		$	—		$	—		$	—

As a result of the convertible promissory notes defaults, these leases are also in default (see note 13). The lessor may demand full repayment of these obligations under capital lease. As a result, the obligations under capital lease have been presented as current liabilities. The original terms of the obligations under capital lease are noted below under paragraphs (a), (b) and (c). Refer also to going concern, note 2 and subsequent events, note 20 (a).

(a)	The lease agreement for certain equipment for the Company's organic composting facility at a cost of $214,902 ($286,650 CAD), is payable in monthly blended installments of principal and interest of $4,378 ($5,840 CAD), plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of $21,441 ($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 agreement for certain equipment for the Company's organic waste processing and composting facility at a cost of $185,513 ($247,450 CAD), is payable in monthly blended installments of principal and interest of $3,837 ($5,118 CAD), plus applicable  harmonized sales taxes for a period of forty-six months plus the first two monthly blended installments of $7,497 ($10,000 CAD) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of $ 18,503 ($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.
(c)	The lease agreement for certain equipment for the Company's organic waste processing and composting facility at a cost of $292,121 ($389,650 CAD), is payable in monthly blended installments of principal and interest of $5,137 ($6,852 CAD), plus applicable harmonized sales taxes for a period of fifty-nine months plus an initial deposit of $14,582 ($19,450 CAD) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of a nominal amount of $75 ($100 CAD) plus applicable harmonized sales taxes on February 27, 2025. The leasing agreement bears interest at the rate of 3.59% annually, compounded monthly, due February 27, 2025.

The lease liabilities are secured by the equipment under capital lease as described in note 9.

Minimum lease payments as per the original terms of the obligations under capital lease are as follows:

In the three-month period ending December 31, 2020	$	57,789
In the year ending December 31, 2021		168,537
In the year ending December 31, 2022		83,987
In the year ending December 31, 2023		61,647
In the year ending December 31, 2024		61,647
In the year ending December 31, 2025		5,212
		438,819
Less: imputed interest		(29,159	)
Total	$	409,660

For the three and nine-month periods ended September 30, 2020, $4,902 ($6,536 CAD) and $13,822 ($18,701 CAD) (2019-$3,682; $4,856 CAD and $12,237; $16,264 CAD) respectively, in interest was incurred.