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LEASE LIABILITIES

12 Months Ended

Dec. 31, 2020

NOTE 11 LEASE LIABILITIES

The Company’s lease obligations include equipment, vehicles and office space. Leased assets are included in plant and equipment (Note 9). The terms and conditions contained in the Company’s leases do not contain variable components.

Lease liabilities as at December 31, 2020 and 2019 are as follows:


	Total discounted lease liabilities
	December 31, 2020		December 31, 2019
Finance leases	$	4,735	$	6,229
Operating lease		761		904
Lease liabilities	$	5,496	$	7,133
Current portion		(2,440)		(2,115)
Long-term portion	$	3,056	$	5,018

On January 1, 2019, the Company adopted ASC 842, “Leases,” under a modified retrospective transition method and recorded a nominal cumulative-effect adjustment to the opening accumulated deficit balance.

Lease liabilities at December 31, 2020 are recorded using a weighted average discount rate of 6.83% and 8.73%, respectively, for finance and operating leases and have average remaining lease terms of two years and four years, respectively.

During the year ended December 31, 2020, the Company recorded $1.3 million (December 31, 2019 – $1.8 million) in interest and other finance costs related to leases. A breakdown of the lease related costs for the year ended December 31, 2020 and 2019 are as follows:


	December 31, 2020		December 31, 2019
Finance leases:
Amortization of ROU assets	$	878	$	1,123
Interest expense		392		517
Total	$	1,270	$	1,640

Operating lease:
Rent expense	$	194	$	193

Future minimum undiscounted lease payments as at December 31, 2020 are as follows:


	Payments due by period
	2021		2022		2023		2024		2025		Total
Operating lease obligation	$	228	$	230	$	234	$	156	$	—	$	848
Finance lease obligations		2,467		2,186		274		24		—		4,951
Total future minimum lease payments	$	2,695	$	2,416	$	508	$	180	$	—	$	5,799
Less: Imputed interest												(303)
Total												5,496