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

Lease liabilities

v3.21.1
Lease liabilities
12 Months Ended
Dec. 31, 2020
Lease liabilities.  
Lease liabilities

10.            Lease liabilities

Lease obligations relate to the Company’s rent of warehouse spaces and kiosk locations to promote vehicle sales. The term of leases related to warehouse spaces expire on August 31, 2021 and August 1, 2022, respectively, with the Company holding an option to renew one of the warehouse leases for a further five years which has been included in the lease term. The Company entered into 4 long term lease agreements in 2020 for the lease of kiosk locations in USA which expire between November 30, 2021 to September 30, 2023.

The Company terminated one of its warehouse leases on January 31, 2020 without penalty for termination and derecognized the lease liability and net right-of-use asset of $33,442 and $42,765, respectively, on the effective date of termination.

The Company incurred $247,262 of lease expenses for year ended December 31, 2020 (2019 - $27,765), for short-term leases and low-value leases which are not included in the measurement of lease liabilities.

The following tables reconciles the change in the lease liabilities and discloses a maturity analysis of the lease liabilities for year ended December 31, 2020 and 2019:

 

 

 

 

 

Balance as at January 1, 2019

    

$

1,553,524

Accretion of lease liability

 

 

91,112

Repayment of principal and interest

 

 

  

 

 

 

 

Repayment of principal and interest

 

 

(515,387)

Balance as at December 31, 2019

 

$

1,129,249

Lease addition

 

 

465,312

Lease termination

 

 

(33,442)

Accretion of lease liability

 

 

79,205

Repayment of principal and interest

 

 

(564,551)

Balance as at December 31, 2020

 

$

1,075,773

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

 

Present value of

 

    

Future minimum

    

 

 

    

minimum lease

At December 31, 2020

 

lease payments

 

Interest

 

payments

Less than one year

 

$

641,448

 

$

65,216

 

$

576,232

Between one and five years

 

 

458,146

 

 

84,257

 

 

373,889

More than five years

 

 

133,118

 

 

7,466

 

 

125,652

 

 

$

1,232,712

 

$

156,939

 

 

1,075,773

Current portion of lease liabilities

 

 

 

 

 

 

 

 

576,232

Non-current portion of lease liabilities

 

 

 

 

 

 

 

$

499,541