Registration statement for securities of certain foreign private issuers

RIGHT OF USE ASSET AND LEASE LIABILITY

v3.23.2
RIGHT OF USE ASSET AND LEASE LIABILITY
 12 Months Ended
Dec. 31, 2022
RIGHT OF USE ASSET AND LEASE LIABILITY

NOTE 10 — 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:

 

    2022     2021  
    As of December 31,  
    2022     2021  
Right of use asset – Buildings   $ 2,541,123     $ 1,378,312  
Right of use asset – Buildings (related party)     11,149,101       -  
Right of use asset – Leasehold     992,410       992,410  
Right of use asset – Office space     58,412       58,412  
Foreign currency translation     (119,182 )     (117,959 )
Accumulated depreciation of right of use assets     (1,723,114 )     (1,233,934 )
Accumulated depreciation of right of use assets (related party)     (325,040 )     -  
  Right of use asset   $ 12,573,710     $ 1,077,241  

 

During the year ended December 31, 2022, the Company recorded depreciation of right-of-use assets of $814,220 (2021 — $507,688).

 

During July 2022, the Company signed two lease agreements for University of Antelope Valley’s buildings with the former owners, a related party, both with 12-year terms. A right of use asset and a lease liability of $11,149,101 was booked to the Consolidated Statements of Financial Condition for the leases.

 

Lease liabilities

 

The maturity analysis of lease liabilities is as follows:

 

                 
    As of December 31,  
    2022     2021  
Within one year   $ 1,664,966     $ 436,270  
Two to five years     6,280,716       298,594  
Thereafter     17,871,937       9,007,645  
 Gross lease liabilities     25,817,619       9,742,509  
Less: Finance Charges component     (12,832,744 )     (8,411,649 )
 Lease liabilities   $ 12,984,875     $ 1,330,860  
                 
Lease liabilities – Current   $ 1,590,538     $ 436,271  
Lease liabilities - Non-Current     11,394,337       894,589  
 Lease liabilities   $ 12,984,875     $ 1,330,860  

 

The weighted average discount rate utilized to calculate the present value of the lease liabilities was 7.71%. The average remaining life of the leases is 22 years.