Obligations under Capital Lease

9 Months Ended

Sep. 30, 2024

Obligations Under Capital Lease [Abstract]

Obligations under Capital Lease [Text Block]

10. Obligations under Capital Lease

		September 30, 2024			December 31, 2023
		Total			Total
Obligations under Capital Lease	$	59,818		$	66,037
Less: current portion		(59,818	)		(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 $288,653 (C$389,650), is payable in monthly blended installments of principal and interest of $5,076 (C$6,852), plus applicable harmonized sales taxes for a period of fifty-nine months plus an initial deposit of $14,409 (C$19,450) plus applicable harmonized sales taxes and an option to purchase the equipment for a final payment of a nominal amount of $74 (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).

For the three and nine-month periods ended September 30, 2024, $459 (C$626) and $1,611 (C$2,192) (2023-$785; C$1,053 and $2,768; C$3,725) 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.