5. LEASES

The Company's leases consist of leases for office space, which are classified as operating leases.

The Company incurred total operating lease costs of $137,782 during the year ended December 31, 2022 (December 31, 2021 - $74,101), and total variable lease costs of $77,705 during the year ended December 31, 2022 (December 31, 2021 - $1,069). These costs are included within general and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

The cash paid for amounts included in the measurement of lease liabilities were $144,539 during the year ended December 31, 2022 (December 31, 2021 - $nil). This amount is included in operating activities in the consolidated statements of cash flows.

As at December 31, 2022, the operating lease liabilities are expected to mature as follows:

		Operating Leases
2023	$	234,092
2024		237,524
2025		181,363
Total undiscounted lease payments		652,979
Less: effect of discounting		(41,088	)
Total lease liability	$	611,891

The Company has also entered into an agreement for the lease of new office space, which has not commenced as at December 31, 2022, and has thereby not yet been recognized. The lease is expected to commence in the fall of 2023. The initial non-cancellable term of this lease is for 10 years, with the undiscounted lease payments over the non-cancellable term equal to $2,226,432, plus variable lease costs for operating costs.