Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Net investment in sublease

v3.21.1
Net investment in sublease
12 Months Ended
Dec. 31, 2020
Net investment in sublease  
Net investment in sublease

7.            Net investment in sublease

The Company entered into an agreement to sublease its office space in Los Angeles, USA, with effect from February 1, 2020. The Company has classified the sublease as a finance lease as the term of the sublease is for major part of the economic life of the right-of-use asset arising from the head lease. At the commencement date of the sublease, the Company derecognized the right-of-use asset relating to the head lease that it transferred to the sub-lessee and recognized the net investment in the sub-lease. The term of the sublease expires on August 21, 2021.

During the year ended December 31, 2020, the Company provided rent relief to a sub-lessee from August to the expiry date on August 21, 2021. Accordingly, the Company has recognized $62,935 of lease modification loss in relation to the net investment in sublease.

As at December 31, 2021, the contractual undiscounted cash flows related to subleases were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value of

 

 

Future minimum

 

 

 

 

minimum lease

 

 

lease payments

 

Interest

 

payments

 

    

receivable

    

income

    

receivable

Less than one year

 

$

40,000

 

$

1,459

 

$

38,541

Between one and five years

 

 

 —

 

 

 —

 

 

 —

Net investment in sublease

 

$

40,000

 

$

1,459

 

$

38,541