Registration statement for securities of certain foreign private issuers

RIGHT OF USE ASSET AND LEASE LIABILITY

v3.22.2.2
RIGHT OF USE ASSET AND LEASE LIABILITY
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
RIGHT OF USE ASSET AND LEASE LIABILITY    
RIGHT OF USE ASSET AND LEASE LIABILITY

NOTE 9 — RIGHT OF USE ASSET AND LEASE LIABILITY

Net carrying amounts of right-of-use assets

The carrying amounts of right-of-use assets are as follows:

    

As of December 31,

2021

    

2020

Right of use asset – buildings

$

1,378,312

$

1,378,312

Right of use asset – office space

 

58,412

 

58,412

Right of use asset – leaseholds

 

992,410

 

992,410

Foreign currency translation

 

(117,959)

 

(39,007)

Accumulated depreciation on right of use assets

 

(1,233,934)

 

(726,246)

Right of use asset, net.

$

1,077,241

$

1,663,881

During the year ended December 31, 2021, the Company recorded depreciation of right-of-use assets of $507,688 (2020 — $491,185) which is included in cost of revenue on the accompanying statements of operations and comprehensive loss.

Lease liabilities

The maturity analysis of lease liabilities is as follows:

    

As of December 31,

2021

    

2020

Within one year

$

436,270

$

545,132

Two to five years

 

298,594

 

660,034

Thereafter

 

9,007,645

 

9,924,141

 

9,742,509

 

11,129,307

Less: finance charges component

 

(8,411,649)

 

(9,276,243)

$

1,330,860

$

1,853,064

Lease liabilities, current

$

436,271

$

545,132

Lease liabilities, non-current

 

894,589

 

1,307,932

$

1,330,860

$

1,853,064

The weighted average discount rate utilized to calculate the present value of the lease liabilities was 11.25%.

NOTE 9 — RIGHT OF USE ASSET AND LEASE LIABILITY

Net carrying amounts of right-of-use assets

The carrying amounts of right-of-use assets are as follows:

    

As of December 31,

2020

    

2019

Right of use asset – buildings

$

1,378,312

$

1,378,312

Right of use asset – office space

 

58,412

 

58,412

Right of use asset – leaseholds

 

992,410

 

992,410

Foreign currency translation

 

(39,007)

 

Accumulated depreciation on right of use assets

 

(726,246)

 

(235,061)

Right of use asset, net.

$

1,663,881

$

2,194,073

During the year ended December 31, 2020, the Company recorded depreciation of right-of-use assets of $491,185 (2019 — $235,061) which is included in cost of revenue on the accompanying statements of operations and comprehensive loss.

Lease liabilities

The maturity analysis of lease liabilities is as follows:

    

As of December 31,

2020

    

2019

Within one year

$

545,132

$

544,551

Two to five years

 

660,034

 

1,214,787

Thereafter

 

9,924,141

 

15,534,632

 

11,129,307

 

17,293,970

Less: finance charges component

 

(9,276,243)

 

(15,020,231)

$

1,853,064

$

2,273,739

Lease liabilities, current

$

545,132

$

544,551

Lease liabilities, non-current

 

1,307,932

 

1,729,188

$

1,853,064

$

2,273,739

The weighted average discount rate utilized to calculate the present value of the lease liabilities was 11.25%.