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Interest Income and Interest Expense
 12 Months Ended
Dec. 31, 2022
Interest Income and Interest Expense

7. Interest Income and Interest Expense

 

In 2021, the Company entered into a factoring agreement for $4.8 million with a commercial bank to purchase certain accounts receivable on non-recourse basis. As at December 31, 2022, the factoring facility was increased to $13.6 million. As invoices were factored with the bank, they were not recorded as accounts receivable in the Company’s consolidated financial statements. As of December 31, 2022, accounts receivable factored was approximately $4.1 million ($1.4 million as of December 31, 2021).

 

As of December 31, 2022, the unused portion of the financing facilities was approximately $9.5 million ($3.4 million as of December 31, 2021).

 

The interest rates under the factoring agreement range from 1.2% to 1.25% (2021: 1.1% to 1.25%) per annum.

 

The following table provides additional information about the Company’s interest income, interest expense and other financing costs, net:

 

   2022   2021 
   For the year ended December 31. 
   2022   2021 
Interest income  $1,710   $70 
Interest expense on lease liabilities   (4,958)   (148)
Interest expense on factoring arrangement   (256,745)   (3,281)
Total:  $(259,993)  $(3,359)