10. Obligations under Capital Lease

		June 30, 2024			December 31, 2023
		Total			Total
Obligations under Capital Lease	$	58,995		$	66,037
Less: current portion		(58,995	)		(66,037	)
Long-term portion	$	-		$	-

Refer also to going concern, note 2.

The lease agreement for certain equipment for the Belleville Facility at a cost of $284,678 (C$389,650), is payable in monthly blended installments of principal and interest of $5,006 (C$6,852), plus applicable harmonized sales taxes for a period of fifty-nine months plus an initial deposit of $14,210 (C$19,450) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of a nominal amount of $73 (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 liability was secured by the equipment under capital lease as previously described under long-lived assets, net (note 7).

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

In the six-month period ending December 31, 2024	$	55,070
In the year ending December 31, 2025		5,079
		60,149
Less: imputed interest		(1,154	)
Total	$	58,995

For the three and six-month periods ended June 30, 2024, $595 (C$814) and $1,153 (C$1,566) (2023-$931; C$1,249 and $1,983; C$2,672) respectively, in interest was incurred.

The Company is in arrears with payments to the lessor. The last payment made was on January 27, 2024. As a result, on May 24, 2024, the lessor repossessed the equipment.