LEASE LIABILITIES

9 Months Ended

Sep. 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 September 30, 2019 and December 31, 2018 are as follows:

	Total discounted lease liabilities
	September 30, 2019		December 31, 2018
Finance leases	$	6,588		6,429
Operating lease		922	$	—
Lease liabilities	$	7,510	$	6,429
Current portion		(2,045)		(1,511)
Long-term portion	$	5,465	$	4,918

Lease liabilities at September 30, 2019 are recorded using a weighted average 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 nine months ended September 30, 2019 are as follows:

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Finance leases:
Amortization of ROU assets	$	353	$	829
Interest expense		156		444
Total	$	509	$	1,273
Operating lease:
Rent expense	$	49	$	145

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

	Payments due by period
	2019		2020		2021		2022		2023		Thereafter		Total
Operating lease obligation	$	56	$	226	$	230	$	232	$	237	$	158	$	1,139
Finance lease obligations		579		2,318		2,362		2,058		105		—		7,422
Total future minimum lease payments	$	635	$	2,544	$	2,592	$	2,290	$	342	$	158	$	8,561
Less: Imputed interest														(1,051)
Total														7,510