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Right-of-Use Assets and Lease Liability

12 Months Ended

Dec. 31, 2023

Right-of-Use Assets and Lease Liability [Abstract]

Right-of-use assets and lease liability

In 2021, the Company entered into 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 and a 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 lease agreement for additional office space in Vancouver, B.C. through July 10, 2023. During the year ended December 31, 2023, this lease expired, and the related security deposit was returned to the Company.

In 2022, the Company entered into a contractual agreement to lease office space in Corpus Christi, Texas through August 31, 2024. During the year ended December 31, 2023, this lease was terminated.

In 2023, the Company entered into 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 $1,516. The Company recorded a right-of use (“ROU”) asset and a corresponding lease obligation of $40,325 on February 1, 2023. When measuring the present value of lease obligations, the remaining lease payments were discounted using the estimated borrowing rate of 7%.

In 2023, the Company entered into a contractual agreement to lease additional office space in Corpus Christi, Texas through June 30, 2025. The terms of the lease call for a monthly lease payment of $5,994. The Company recorded a right-of use (“ROU”) asset and a corresponding lease obligation of $149,325 on April 1, 2023. When measuring the present value of lease obligations, the remaining lease payments were discounted using the estimated borrowing rate of 7%.

In 2023, the Company entered a contractual agreement to lease office space in Dallas, Texas through October 31, 2028. The terms of the lease call for a monthly lease payment of $5,087. The Company recorded a right-of use (“ROU”) asset and a corresponding lease obligation of $260,141 on June 1, 2023. When measuring the present value of lease obligations, the remaining lease payments were discounted using the estimated borrowing rate of 7%.

The change in the lease liability during the year ended December 31, 2022, and the year ended December 31, 2023 was as follows:

	Leased asset $			Leased offices $			Total $
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
Additions		-			449,823			449,823
Lease termination		-			(22,945	)		(22,945	)
Accretion		-			32,838			32,838
Lease payments made		-			(177,439	)		(177,439	)
Currency translation adjustment		-			10,083			10,083
Balance, December 31, 2023		-			472,788			472,788
Less: current lease liability		-			(177,641	)		(177,641	)
Balance (long-term), December 31, 2023		-			295,147			295,147

As of December 31, 2023, the undiscounted future lease payments are as follows:

Year	$
2024		206,196
2025		140,121
2026		63,874
2027		65,182
2028		55,227
Total		530,600