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Right-of-use assets

12 Months Ended

Dec. 31, 2022

Right-of-use assets

The Company had a contractual arrangement to lease a copier through August 8, 2022.

In 2021, the Company entered a contractual agreement to lease office space in Corpus Christi, Texas through June 30, 2025. The terms of the lease call for a monthly lease payment of $5,417. The Company recorded a right-of use (“ROU”) asset based on the corresponding lease obligation of $221,139 on July 1, 2021.When measuring the present value of lease obligations, the remaining lease payments were discounted using the estimated borrowing rate of 7%.

In 2021, the Company acquired a contractual agreement to lease additional office space in Vancouver, B.C. through July 10, 2023. The terms of the lease call for a monthly payment of $4,068 CAD. The Company recorded an ROU asset based on that corresponding lease obligation of $45,444. When measuring the present value of lease obligations, the Company discounted the remaining lease payments using the estimated borrowing rate of 7%.

In 2022, the Company entered a contractual agreement to lease office space in Corpus Christi, Texas through August 31, 2024. The terms of the lease call for a monthly lease payment of $1,640. The Company recorded an ROU asset based on the corresponding lease obligation of $34,898 on September 1, 2022. When measuring the present value of lease obligations, the remaining lease payments were discounted using the Company’s estimated borrowing rate of 7%.

The change in the ROU assets during the years ended December 31, 2021 and December 31, 2022 was as follows:

	Leased copier $			Leased offices $			Total $
Balance, December 31, 2020		8,867			-			8,867
Additions		-			266,583			266,583
Depreciation		(5,451	)		(27,642	)		(33,093	)
Currency translation adjustment		-			2,207			2,207
Balance, December 31, 2021		3,416			241,148			244,564
Additions		-			34,898			34,898
Depreciation		(3,416	)		(88,311	)		(91,727	)
Currency translation adjustment		-			(2,121	)		(2,121	)
Balance, December 31, 2022		-			185,614			185,614

The change in the Long-Term lease liability during the years ended December 31, 2021 and December 31, 2022 was as follows:

	Leased copier $			Leased offices $			Total $
Balance, December 31, 2020		8,867			-			8,867
Additions					273,001			273,001
Accretion					7,471			7,471
Lease payments made		(5,451	)		(32,137	)		(37,588	)
Currency translation adjustment					(2,242	)		(2,242	)
Balance, December 31, 2021		3,416			246,093			249,509
Additions					34,898			34,898
Accretion		77			15,157			15,234
Lease payments made		(3,493	)		(103,953	)		(107,446	)
Currency translation adjustment		-			(11,767	)		(11,767	)
Balance, December 31, 2022		-			180,428			180,428
Less: current lease liability		-			(84,262	)		(84,262	)
Balance (Long Term), December 31, 2022		-			96,166			96,166

As of December 31, 2022, the undiscounted future lease payments are as follows:

Year	$
2023		127,967
2024		81,267
2025		32,502
Total		241,736