LEASE LIABILITIES

6 Months Ended

Jun. 30, 2019

LEASE LIABILITIES

LEASE LIABILITIES

NOTE 9 LEASE LIABILITIES

On January 1, 2019, the Company adopted ASC 842, “Lease Accounting,” and recorded a nominal cumulative-effect adjustment to the opening accumulated deficit balance. The Company’s lease obligations include equipment, vehicles and office space. Leased assets are included in plant and equipment (See note 7 for details).  The terms and conditions contained in the Company’s leases do not contain variable components.

Lease liabilities as at June 30, 2019 and December 31, 2018 are as follows:

	Total discounted lease liabilities
	June 30, 2019		December 31, 2018
Finance leases	$	7,039		6,429
Operating lease		969	$	—
Lease liabilities	$	8,008	$	6,429
Current portion		(2,007)		(1,511)
Long-term portion	$	6,001	$	4,918

Lease liabilities at June 30, 2019 are recorded using a discount rate of 8.73% and 7.32%, respectively for operating and finance leases and have average remaining lease terms of five years and three years, respectively.

Lease related costs for the three and six months ended June 30, 2019 are as follows:

	Three months ended June 30,				Six months ended June 30,
	Operating lease		Finance leases		Operating lease		Finance leases
Amortization of ROU assets	$	27	$	318	$	53	$	485
Interest expense		21		153		43		288
Total	$	48	$	471	$	96	$	773

Future minimum lease payments (undiscounted) as at June 30, 2019 are as follows:

	Payments due by period
	2019		2020		2021		2022		2023		Thereafter		Total
Operating lease obligation	$	111	$	225	$	230	$	232	$	237	$	158	$	1,193
Finance lease obligations		1,194		2,317		2,362		2,057		105		—		8,035
Total future minimum lease payments	$	1,305	$	2,542	$	2,592	$	2,289	$	342	$	158	$	9,228
Less: Imputed interest														(1,220)
Total													$	8,008