Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

RIGHT OF USE ASSETS - LEASE

v3.20.2
RIGHT OF USE ASSETS - LEASE
 9 Months Ended
Sep. 30, 2020
Presentation of leases for lessee [abstract]  
RIGHT OF USE ASSETS - LEASE
4.
RIGHT OF USE ASSETS – LEASE

For the nine months ended September 30, 2020
  
Cost
    
Accumulated Amortization
    
Net Book
Value
  
Balance at December 31, 2019
  
$
34,172
    
$
(3,778
)
  
$
30,394
  
Additions during the period
    
442,684
      
-
      
442,684
  
Amortization in the period
    
-
      
(59,816
)
    
(59,816
)
Balance at September 30, 2020
  
$
476,856
    
$
(63,594
)
  
$
413,262
  
 

For the year ended December 31, 2019
  
Cost
    
Accumulated Amortization
    
Net Book
Value
  
Balance at December 31, 2019
  
$
-
    
$
-
    
$
-
  
Additions during the year
    
34,172
      
-
      
34,172
  
Amortization in the year
    
-
      
(3,778
)
    
(3,778
)
Balance at December 31, 2019
  
$
34,172
    
$
(3,778
)
  
$
30,394
  
 
The Company entered into an 18-month lease for its corporate head office in Toronto, Ontario in November 2019. The Company recognized a right-of-use asset offset by a prepayment and a lease liability in the statement of financial position, initially measured at the present value of future lease payments (net of non-lease general expenses which are expensed as incurred). For the nine months ended September 30, 2020, the Company recognized $16,976 of amortization and $10,970 in interest expense relating to this lease and repaid $14,237 of the lease liability. There is no long-term lease liability associated with the corporate head office lease.
 
On September 4, 2019, the Company entered into a lease agreement with a third party to lease certain office space in Chapel Hill, North Carolina. The term of the lease is 62 full months. The average monthly base rent is $8,320. The lease commencement date was April 1, 2020, the date the space was ready-for-use. As of April 1, 2020, the Company recognized a right-of-use asset and a lease liability of $442,684 relating to this lease. For the nine months ended September 30, 2020, the Company recognized $42,840 of amortization and $12,693 in interest expense relating to this lease, repaid $19,528 of the lease liability and recognized a long-term lease liability of $347,286.