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Lease obligations | 9 Months Ended | 12 Months Ended
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Sep. 30, 2020 | Sep. 30, 2022
Presentation of leases for lessee [abstract] |  |
Lease obligations [Text Block] | 12. Lease obligations During the nine months ended September 30, 2020, KWESST terminated an office lease and entered into a long-term office lease contract. The office lease includes the right to renew for an additional five years following its expiry on April 30, 2026. Management has not included the renewal option because it was deemed too uncertain whether KWESST would renew at this time. Under the new office lease, KWESST benefits from the following lease inducements: • Free rent from inception (March 1, 2020) to November 1, 2020; and • Free rent from November 1, 2021, to March 1, 2022. When measuring the lease obligation, the Company discounted the remaining lease payments using the incremental estimated borrowing rate of Company of 10% per annum at the time of closing the new lease agreement. The following table presents lease obligations for KWESST:
|  | Offices |  |  | Printer |  |  | Total |  |  | Current Portion |  |  | Non-current portion |
Balance, December 31, 2018 | $ | 266,292 |  | $ | 13,761 |  | $ | 280,053 |  | $ | 77,367 |  | $ | 202,686 |
Lease payments (including interest) |  | (94,270 | ) |  | (7,620 | ) |  | (101,890 | ) |  | - |  |  | - |
Interest expense |  | 23,441 |  |  | 1,082 |  |  | 24,523 |  |  | - |  |  | - |
Balance, December 31, 2019 | $ | 195,463 |  | $ | 7,223 |  | $ | 202,686 |  | $ | 85,468 |  | $ | 117,218 |
Addition |  | 347,640 |  |  | - |  |  | 347,640 |  |  |  |  |  |  |
Termination |  | (157,315 | ) |  | - |  |  | (157,315 | ) |  |  |  |  |  |
Lease payments (including interest) |  | (62,816 | ) |  | (7,620 | ) |  | (70,436 | ) |  |  |  |  |  |
Interest expense |  | 29,065 |  |  | 397 |  |  | 29,462 |  |  |  |  |  |  |
Balance, September 30, 2020 (as adjusted) | $ | 352,037 |  | $ | - |  | $ | 352,037 |  | $ | 44,128 |  | $ | 307,909 |
Refer to Note 7 regarding the correction of an error in the application of IFRS 16. The termination of the former lease resulted in the de-recognition of the lease obligation and related unamortized book value of the right-of-use asset, resulting in a gain of $17,527. This was included in the net finance costs for the nine months ended September 30, 2020. The following table presents the contractual undiscounted cash flows for the lease obligations:
|  | September 30, 2020 |  |  | December 31, 2019 |
Less than one year | $ | 78,000 |  | $ | 101,890 |
One to five years |  | 390,000 |  |  | 125,693 |
Total | $ | 468,000 |  | $ | 227,583 |
| 13. Lease obligation We have entered into a long-term office lease contract which expires on April 30, 2026. The office lease includes the right to renew for an additional five years following its expiry. Management has not included the renewal option because it was deemed too uncertain whether we would renew at September 30, 2022. Under the current office lease agreement, we have benefited from the following lease inducements:
| • | Free rent from inception (March 1, 2020) to November 1, 2020; and
| • | Free rent from November 1, 2021, to March 1, 2022.
The following table presents the movement in our lease obligation for the respective periods:
|  |  |  |  | Current |  |  | Non-current |
|  | Offices |  |  | Portion |  |  | portion |
Balance, September 30, 2020 | $ | 352,037 |  | $ | 44,128 |  | $ | 307,909 |
Lease payments (including interest) |  | (78,000 | ) |  | - |  |  | - |
Interest expense |  | 33,872 |  |  | - |  |  | - |
Balance at September 30, 2021 | $ | 307,909 |  | $ | 32,288 |  | $ | 275,621 |
Lease payments (including interest) |  | (62,400 | ) |  | - |  |  | - |
Interest expense |  | 30,112 |  |  | - |  |  | - |
Balance at September 30, 2022 | $ | 275,621 |  | $ | 69,150 |  | $ | 206,471 |
The following table presents the contractual undiscounted cash flows for the lease obligations:
|  | September 30, |  |  | September 30, |
|  | 2022 |  |  | 2021 |
Less than one year | $ | 93,600 |  | $ | 62,400 |
One to five years |  | 234,000 |  |  | 327,600 |
Total | $ | 327,600 |  | $ | 390,000 |

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- Definition The entire disclosure for leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2022-03-24 -Section Presentation -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2022-en-r&doctype=Standard&dita_xref=IFRS16_g47-50__IFRS16_g47-50_TI -URIDate 2022-03-24 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 16 -IssueDate 2022-03-24 -Section Disclosure -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=16&code=ifrs-tx-2022-en-r&doctype=Standard&dita_xref=IFRS16_g51-60__IFRS16_g51-60_TI -URIDate 2022-03-24 + Details
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