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Other current assets

12 Months Ended

Dec. 31, 2021

15. Other current assets


	December 31,		December 31,
	2021		2020
Advances against auction contracts	$	4,102	$	6,487
Assets held for sale		17,538		—
Prepaid expenses and deposits		41,955		20,787
Derivative financial asset		751		—
	$	64,346	$	27,274

15. Other current assets (continued)

On December 21, 2021, we completed the offering of two series of senior notes, as described in Note 21. The gross proceeds from the offering together with certain additional amounts including $11,150,000 of prepaid interest were placed into escrow accounts and will be held in escrow until the completion of the Euro Auctions Acquisition. The prepaid interest covers the period from January 1, 2022 to March 31, 2022.

Advances against auction contracts

Advances against auction contracts arise when the Company pays owners, in advance, a portion of the expected gross auction proceeds from the sale of the related assets at future auctions. The Company’s policy is to limit the amount of advances to a percentage of the estimated gross auction proceeds from the sale of the related assets, and before advancing funds, require proof of owner’s title to and equity in the assets, as well as receive delivery of the assets and title documents at a specified auction site, by a specified date and in a specified condition of repair.

Advances against auction contracts are generally secured by the assets to which they relate, as the Company requires owners to provide promissory notes and security instruments registering the Company as a charge against the asset. Advances against auction contracts are usually settled within two weeks of the date of sale, as they are netted against the associated auction proceeds payable to the owner.

Assets held for sale



Balance, December 31, 2019	$	15,051
Reclassified from property, plant and equipment		(6,888)
Disposal		(8,163)
Balance, December 31, 2020	$	—
Reclassified from property, plant and equipment		17,779
Disposal		(241)
Balance, December 31, 2021	$	17,538

On August 13, 2021, the Company entered into an agreement to sell a parcel of land including all buildings, in Bolton, Ontario, which was subsequently amended on January 27, 2022. The selling price for the Bolton property is approximately $170,000,000 ($210,000,000 Canadian dollars) and is subject to certain closing adjustments. The Company also anticipates that it will incur approximately $1,500,000 in selling costs. The Company intends to relocate its auction operation from the Bolton property to a replacement property located in Amaranth, Ontario. The closing of the sale of the Bolton property is conditioned upon, among other customary closing conditions, the Company receiving: (i) zoning and other governmental approvals necessary for the construction and development of the replacement property and (ii) confirmation from the vendor of the replacement property that it has satisfied its conditions under a separate agreement of purchase and sale with respect to the replacement property. These conditions must be satisfied or waived by the Company by May 31, 2022 and are subject to an extension that shall not extend past October 1, 2022. In addition, upon closing of the sale of the Bolton property, the Company intends to lease the Bolton property for a period of two years and has an option to renew the lease for two additional one-year periods, until such time as the replacement property is available for relocation of the Company’s operations. During such lease period, the Company will continue to conduct normal auction operations at the Bolton property. The Company has classified the Bolton property, with a net book value of $7,067,000 as an asset held for sale on the consolidated balance sheet.

On January 14, 2022, the Company also entered into an agreement to sell vacant land in Casa Grande, Arizona and accordingly has classified the property with a net book value of $10,500,000 as an asset held for sale as at December 31, 2021.

In 2020, the Company sold excess auction site acreage in the United States. The Company also sold the property that was reclassified to property, plant and equipment during the first quarter of 2020. The sale of the two properties resulted in combined proceeds of $15,555,000 and a combined pre-tax gain of $1,090,000 (2019: $571,000 gain related to the sale of property located in the United States).