Long-lived Assets, net

12 Months Ended

Dec. 31, 2021

Long lived Assets net [Abstract]

Long-lived Assets, net [Text Block]

9. Long-lived Assets, net

				2021				2020
		Cost		Accumulated		Net book value		Net book value
				depreciation
Land	$	3,380,356	$	-	$	3,380,356	$	1,655,623
Property under construction		1,874,892		-		1,874,892		-
Composting buildings		2,391,736		607,536		1,784,200		1,965,959
Gore cover system		1,110,648		450,099		660,549		771,622
Driveway and paving		365,609		125,526		240,083		268,171
Machinery and equipment		410,551		346,269		64,282		99,227
Equipment under capital lease		502,544		368,057		134,487		269,116
Office trailer		9,466		9,466		-		1,527
Vacuum trailer		5,916		4,437		1,479		3,240
Computer equipment		6,972		6,972		-		385
Signage		6,519		2,601		3,918		2,601
Automotive equipment		173,661		39,074		134,587		4,754
	$	10,238,870	$	1,960,037	$	8,278,833	$	5,042,225

On August 17 2021, the Company acquired the Hamilton Property assets, consisting of land, a vacant building and ECAs. The total purchase price including costs of acquisition of $175,615 (C$221,680) totaled $3,590,773 (C$4,532,633). The costs of acquisition, were settled through cash payments of $119,094 (C$150,333) and the issuance of 200,000 common shares valued based on the trading price on the issuance date at $56,521 (C$71,347) to a consultant who assisted on the closing of the transaction. The issuance of common shares is also noted under capital stock, note 17, common shares issued for professional services. The purchase of the Hamilton Property was funded by cash of $396,364 (C$500,333), the issuance of 300,000 common shares to the vendor on closing, having a value based on the trading price on the issuance date of $84,781 (C$107,020), the issuance noted above of 200,000 common shares to a consultant who assisted on the closing of the transaction disclosed as part of common shares issued for professional services, under capital stock, note 17, a vendor take-back 1st mortgage of $1,584,400 (C$2,000,000) and a portion of the increased existing 1st mortgage of $1,468,686 (C$1,853,933), disclosed under note 12(d), long-term debt. The cost of the purchase price was allocated ratably over the estimated fair value of each long-lived asset acquired, land of $1,724,979 (C$2,177,442), included above under land and building $1,556,002 (C$1,964,141), described above as property under construction. Refer to intangible assets, note 8, for details of the balance of the purchase price representing ECAs acquired.

Also included under property under construction, are construction costs incurred subsequent to the acquisition in the amount of $325,577 (C$412,750).

During the year ended December 31, 2021, depreciation is disclosed in cost of sales in the amount of $507,070 (C$635,426) (2020-$504,838; C$676,636) and in office and administration in the amount of $2,951 (C$3,698) (2020-$5,112; C$6,852) in the consolidated statements of operations and comprehensive loss.

In addition, under deferred assets in the consolidated balance sheets is an accrual in the amount of $nil (C$nil) (December 31, 2020-$215,953; C$274,959), for certain long-lived assets previously expected to be received.