6. Long-lived Assets, net

June 30,

December 31,

2022

2021

Cost

Accumulated
depreciation

Net book value

Net book value

Land

3,325,502

3,380,356

Property under construction

3,711,728

1,874,892

Composting buildings

2,352,925

668,265

1,684,660

1,784,200

Gore cover system

1,092,625

497,426

595,199

660,549

Driveway and paving

359,676

137,876

221,800

240,083

Machinery and equipment

595,910

549,556

46,354

64,282

Equipment under capital lease

302,368

215,419

86,949

134,487

Office trailer

9,312

Vacuum trailer

5,820

5,238

582

1,479

Computer equipment

6,858

Signage

6,414

2,880

3,534

3,918

Automotive equipment

170,843

64,066

106,777

134,587

11,939,981

2,156,896

9,783,085

8,278,833

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 13, 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 13, 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 8 (d) ii), 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.

Also included under property under construction, are construction costs incurred subsequent to the acquisition in the amount of $2,187,555 (C$2,819,014).

Depreciation for the three and six-month periods ended June 30, 2022, is disclosed in cost of sales in the amount of $115,262 (C$147,130) and $231,465 (C$294,260) (2021-$135,539; C$166,265 and $272,099; C$339,148) respectively, and in office and administration in the amount of $nil (C$nil) and $326 (C$413) (2021-$1,076; C$1,317 and $2,267; C$2,285) respectively, in the interim condensed consolidated statements of operations and comprehensive loss.