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Supplemental cash flow information
 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2022
Supplemental Cash Flow Information [Abstract]    
Supplemental cash flow information [Text Block]

21.  Supplemental cash flow information

The following table presents changes in non-cash working capital:

    Nine months ended
September 30,
2020		     Twelve months ended
December 31,
2019		  
          (As restated - see Note 25)  
Trade and other receivables $ (257,588 ) $ (41,465 )
Prepaid expenses and other   (387,762 )   (36,629 )
Other assets   -     (150,000 )
Accounts payable and accrued liabilities   393,202     86,519  
Deferred revenue   7,053     -  
  $ (245,095 ) $ (141,575 )

The following is a summary of non-cash items that were excluded from the consolidated statements of cash flows for the nine months ended September 30, 2020:

  • $358,178 of right-of-use asset and lease obligations relating to the new office lease;
  • $139,787 of right-of-use asset and $157,315 lease obligations de-recognized from KWESST's consolidated financial position relating to the former lease office;
  • $347,280 of KWESST's common shares and warrants for the asset acquisition of GhostStep® Technology;
  • $255,718 of convertible notes, including accrued interest, settled in KWESST's common shares;
  • $322,779 of share offering costs settled in KWESST's common shares;
  • $41,155 of options adjustment due to QT (see note 4(a)); and
  • $17,531 fair value of options exercised and transferred to KWESST's common shares.

The following is a summary of non-cash items that were excluded from the consolidated statements of cash flows for the twelve months ended December 31, 2019:

  • $1,290,255 common shares and warrants for loans.

23.  Supplemental cash flow information

The following table presents changes in non-cash working capital:

    Year ended     Year ended     Nine months ended  
    September 30,     September 30,     September 30,  
    2022     2021     2020  
Trade and other receivables $ 631,801   $ (218,334 ) $ (257,588 )
Inventories   49,446     17,555     -  
Prepaid expenses and other   425,876     (106,205 )   (387,762 )
Accounts payable and accrued liabilities   2,515,289     (828,698 )   393,202  
Contract liabilities   17,410     (7,053 )   7,053  
Deposits   -     150,000     -  
Accrued royalties liability   -     1,191,219     -  
  $ 3,639,822   $ 198,484   $ (245,095 )

The following is a summary of non-cash items that were excluded from the consolidated statements of cash flows for the nine months ended September 30, 2022:

 
•
$83,319 fair value of 875 contingent shares settled via common shares (see Note 4(a));
 
•
$19,000 debt settlement via common shares;
 
•
$61,173 fair value of warrants exercised and transferred to share capital from warrants; and
 
•
$125,000 for 250,000 warrants exercised in connection with the GhostStepTM acquisition in June 2020.

The following is a summary of non-cash items that were excluded from the consolidated statements of cash flows for the year ended September 30, 2021:

 
•
$63,866 debt settlement via common shares;
 
•
$125,000 for 250,000 exercised warrants in connection with the GhostStepTM acquisition in June 2020;
 
•
$102,991 fair value of warrants exercised and transferred to share capital;
 
•
$203,516 fair value of options exercised and transferred to share capital from contributed surplus;
 
•
$1,715,000 fair value of common shares and warrants issued for the acquisition of the LEC System (Note 4(b)),
 
•
$137,000 fair value of common shares issued for the amended and restated license agreement with AerialX (Note 26);
 
•
$169,832 share offering costs relating to the Broker Compensation Options (Note 15(a)); and
 
•
$3,828 non-cash consideration for computer equipment acquired.

The following is a summary of non-cash items that were excluded from the consolidated statements of cash flows for the nine months ended September 30, 2020:

     
 
•
$358,178 of right-of-use asset and lease obligations relating to the new office lease;
 
•
$139,787 of right-of-use asset and $157,315 lease obligations de-recognized from KWESST's consolidated financial position relating to the former lease office;
 
•
$347,280 of KWESST's common shares and warrants for the asset acquisition of GhostStepTM Technology;
 
•
$255,718 of convertible notes, including accrued interest, settled in KWESST's common shares;
 
•
$322,779 of share offering costs settled in KWESST's common shares;
 
•
$41,155 of options adjustment due to QT (see note 4(c)); and
 
•
$17,531 fair value of options exercised and transferred to KWESST's common shares.