LEASE LIABILITIES

12 Months Ended

Dec. 31, 2019

LEASE LIABILITIES

LEASE LIABILITIES

NOTE 10 LEASE LIABILITIES

On January 1, 2019, the Company adopted ASC 842, “Leases,” under a modified retrospective transition method 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 (Note 8). The terms and conditions contained in the Company’s leases do not contain variable components.

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

	Total discounted lease liabilities
	December 31, 2019		December 31, 2018
Finance leases	$	6,229	$	6,429
Operating lease		904		—
Lease liabilities	$	7,133	$	6,429
Current portion		(2,115)		(1,511)
Long-term portion	$	5,018	$	4,918

Lease liabilities at December 31, 2019 are recorded using a weighted average discount rate of 8.73% and 7.28%, respectively, for operating and finance leases and have average remaining lease terms of five years and three years, respectively.

During the year ended December 31, 2019, the Company recorded $1.8 million in interest and other finance costs related to leases. A breakdown of the lease related costs for the year ended December 31, 2019 are as follows:

	Year ended December 31,
		2019
Finance leases:
Amortization of ROU assets	$	1,123
Interest expense		517
Total	$	1,640
Operating lease:
Rent expense	$	193

Future minimum undiscounted lease payments as at December 31, 2019 are as follows:

	Payments due by period
	2020		2021		2022		2023		2024		Total
Operating lease obligation	$	226	$	230	$	232	$	237	$	158	$	1,083
Finance lease obligations		2,340		2,385		2,081		105		—		6,911
Total future minimum lease payments	$	2,566	$	2,615	$	2,313	$	342	$	158	$	7,994
Less: Imputed interest												(861)
Total												7,133