Property and equipment

9 Months Ended

Sep. 30, 2022

Property And Equipment

Property and equipment

6. Property and equipment

Property and equipment consists of the following:  

	September 30, 2022							December 31, 2021
	Cost		Accumulated depreciation			Net book value		Net book value
Land	$	156,854	$	—		$	156,854	$	168,585
Property		2,967,203		(654,558	)		2,312,645		2,596,590
Leasehold improvements		396,173		(33,260	)		362,913		153,730
Furniture and fittings		106,644		(19,081	)		87,563		42,140
Vehicles		55,949		(15,073	)		40,876		49,268
Computer equipment		1,450		(464	)		986		1,350
	$	3,684,273	$	(722,436	)	$	2,961,837	$	3,012,663

Depreciation expense for the nine months ended September 30, 2022 and 2021 was $134,366 and $101,696, respectively.

On July 18, 2022, the Company, through its subsidiary Evernia, entered into an option and Memorandum of Understanding Purchase, Sale and Financing Agreement, with the Evernia landlord, Evernia Station Limited Partnership (“Seller”), whereby the Company paid $50,000 for the option to acquire the building on September 30, 2022 for $5,500,000, with an initial deposit of $1,500,000, which was subsequently renegotiated to $350,000 and paid on October 3, 2022, the $50,000 option price to be applied to the deposit. The expected closing is expected to be February 1, 2023. The current rental of $27,783 was reduced to $20,206 on payment of the option price of $50,000. The Seller will provide financing of $4,000,000 at a coupon of 6.36% per annum, with interest only payments of $21,217 per month. The term of the seller funding will be one year, due and payable on January 31, 2024.