Obligations under Capital Lease

3 Months Ended

Mar. 31, 2022

Obligations Under Capital Lease [Abstract]

Obligations under Capital Lease [Text Block]

9. Obligations under Capital Lease

								March 31,			December 31,
								2022			2021
		(a)			(b)			Total			Total
Obligations under Capital Lease	$	19,651		$	186,972		$	206,623		$	221,133
Less: current portion		(19,651	)		(70,302	)		(89,953	)		(91,047	)
Long-term portion	$	-		$	116,670		$	116,670		$	130,086

Refer also to going concern, note 2.

(a) The lease agreement for certain equipment for the Company's organic composting facility at a cost of $198,034 (C$247,450), is payable in monthly blended installments of principal and interest of $4,096 (C$5,118), plus applicable harmonized sales taxes for a period of forty-six months plus the first two monthly blended installments of $8,003 (C$10,000) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of $19,651 (C$24,680) 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 final payment was made subsequent to March 31, 2022.

(b) The lease agreement for certain equipment for the Company's organic waste processing and composting facility at a cost of $311,837 (C$389,650), is payable in monthly blended installments of principal and interest of $5,484 (C$6,852), plus applicable harmonized sales taxes for a period of fifty-nine months plus an initial deposit of $15,566 (C$19,450) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of a nominal amount of $80 (C$100) 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 under long-lived assets, net (note 6).

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

In the nine-month period ending December 31, 2022	$	80,075
In the year ending December 31, 2023		65,808
In the year ending December 31, 2024		65,808
In the year ending December 31, 2025		5,564
		217,255
Less: imputed interest		(10,632	)
Total	$	206,623

For the three-month period ended March 31, 2022, $1,760 (C$2,229) (2021-$4,903; C$5,181) in interest was incurred. As at March 31, 2022 $1,159 (C$1,448) (December 31, 2021- $800; C$999) in accrued interest is included in accrued liabilities in the interim condensed consolidated balance sheets. As at March 31, 2022, the Company had not paid the final payout amount on the obligations under capital lease (a) and the last two monthly instalments on the obligations under capital lease (b).