Leases

6 Months Ended

12 Months Ended

Jun. 30, 2022

Dec. 31, 2021

Text Block [Abstract]

Leases

NOTE 6 - LEASES

In October 2021, the Company executed a

12-year

lease for office space in Calgary, Alberta. Basic rent and estimated common area expense payments commence in December 2022, preceded by a fixturing period which the Company will use to build out the space. Effective January 2022, the Company recognized a

right-of-use

asset associated with this office space of $6,322,509 and a related lease liability of $6,221,749.

The carrying value of all

right-of-use

assets at June 30, 2022 was $7,298,424 (December 31, 2021 - $916,028). Total lease liabilities were $7,678,618 at June 30, 2022 (December 31, 2021 - $1,045,472). The change in undiscounted contractual cash flows associated with new premise leases are described in Note 15(c).

NOTE 8 - LEASES

The Company leases buildings for its office space, vehicles and other office equipment. The length of a lease depends on the location of the office, with leases generally ranging from three to five years with an option to renew the lease after that date. The majority of office leases require the payment of variable rent for operating costs and taxes which are not based on an index or rate and are recognized as rent expense. Lease payments for short-term leases and low-value assets are recognized as rent expense on a straight-line basis over the lease term. The maturity analysis of the undiscounted cash flows for lease liabilities is included in Note 26(a).

a) Right-of-use assets

The following table presents the change in carrying amount of the Company’s right-of-use assets:



	Office			Equipment and Vehicles			Total

Balance at January 1, 2019	$	285,086		$	–		$	285,086

Acquired right-of-use assets (Note 17)		4,207,837			95,378			4,303,215

Additions to right-of-use assets		–			183,617			183,617

Depreciation charge for the year		(433,617	)		(48,360	)		(481,977	)

Impairment charge for the year		(78,764	)		–			(78,764	)

Effect of movement in exchange rates		(4,369	)		–			(4,369	)

Balance at January 1, 2020	$	3,976,173		$	230,635		$	4,206,808

Acquired right-of-use assets (Note 17)		509,290			–			509,290

Additions to right-of-use assets		84,413			6,158			90,571

Depreciation charge for the year		(780,767	)		(145,661	)		(926,429	)

Impact of lease modification		(221,590	)		–			(221,590	)

Effect of movement in exchange rates		2,648			(582	)		2,067

Balance at December 31, 2020	$	3,570,167		$	90,550		$	3,660,717

Depreciation charge for the year		(748,058	)		(80,198	)		(828,256	)

Impact of lease modification		(1,924,504	)		–			(1,924,504	)

Effect of movement in exchange rates		8,122			(51	)		8,071

Balance at December 31, 2021	$	905,727		$	10,301		$	916,028

b) Amounts recognized in consolidated statements of loss and comprehensive loss


	Year ended December 31,
	2021		2020		2019

Accretion of lease liabilities included in finance costs	$	137,272	$	350,792	$	168,571

Depreciation of right-of-use assets 1		828,256		926,429		481,977

Expense related to variable lease payments 2		825,212		824,062		–

Expense related to short-term leases 2		4,550		–		–

	$	1,795,290	$	2,101,283	$	650,548

Included in depreciation and amortization expense.

Included in rent expense within general and administrative expense.

c) Amounts recognized in consolidated statements of cash flows



	Year ended December 31,

	2021		2020		2019

Total cash outflows included in operating activities	$	137,272	$	350,792	$	168,571

Total cash outflows included in financing activities	$	1,095,327	$	814,072	$	422,783