5. Prepaid Expenses and Deposits

Prepaid expenses as at November 30, 2022 and February 28, 2022 were as follows:

As at November 30, 2022, the Company had $3,429,245 (February 28, 2022 – $2,801,680) of non-refundable cash deposits on machinery and equipment. $33,595 (February 28, 2022 – $672,713) of the prepayments are on machinery and equipment that will be used in connection with the research and development activities at the Terrebonne Facility and will be expensed, and classified as research and development expenses in the period the equipment is received. The remainder of non-refundable cash deposits on machinery and equipment of $3,395,650 (February 28, 2022 – $2,128,967) are non-refundable cash deposits on long-lead machinery and equipment that will be used in a planned Infinite Loop^™ manufacturing facility.

The deposit for insurance represents a pre-payment of the final three months of the Company’s directors and officers’ insurance annual premium.