v3.26.1
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY
3 Months Ended
Jun. 30, 2026
OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY  
OFFICE LEASE - RIGHT OF USE ASSET AND LEASE LIABILITY

13. OFFICE LEASE – RIGHT OF USE ASSET AND LEASE LIABILITY

 

The Company subleases corporate offices in Vancouver, BC, from HDSI under a lease agreement dated May 1, 2021, which expired on April 29, 2026. On May 1, 2026, the lease agreement was renewed for another 5 year term, expiring on April 30, 2031.

Right-of-use asset

 

A summary of the changes in the right-of-use asset for the three months ended June 30, 2026 is as follows:

 

Right-Of-Use-Asset

 

($)

 

Balance at March 31, 2026

 

 

1,681

 

New lease agreement - Commencing May 1, 2026

 

 

162,950

 

Amortization for the period

 

 

(7,113)

Balance at June 30, 2026

 

 

157,518

 

 

Lease liability

 

On May 1, 2026, the Company entered into the lease agreement, which resulted in the lease liability of $212,682 (undiscounted value of $162,950, discount rate used was 12.00%). This liability represents the monthly lease payment from May 1, 2026 to April 30, 2031, the end of the lease term less abatement granted by HDSI.

 

A summary of changes in the lease liability during the three months ended June 30, 2026 are as follows:

 

Lease Liability

 

($)

 

Balance at March 31, 2026

 

 

2,347

 

Lease payment – base rent portion

 

 

(10,549)

Lease liability – accretion expense

 

 

3,152

 

New lease agreement

 

 

162,950

 

Balance at June 30, 2026

 

 

157,899

 

 

 

 

 

 

Current portion

 

 

28,469

 

Long-term portion

 

 

129,430