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Lease Liability

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Dec. 31, 2021

Lease Liability [Abstract]

Lease Liability

13. Lease Liability

		Maturity		Incremental borrowing rate			June 30, 2023			December 31, 2022
Current		2023		10.25	%		$	225,265		$	214,058
Non-current		2024		10.25	%			19,831			116,763
							$	245,096		$	330,821

On August 1, 2022, the Company entered into a lease agreement for an office space with a monthly lease payment of $20,000 over a period of two years. Under IFRS 16, the Company recognizes lease liabilities measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate.

The details of the lease liability recognized as at June 30, 2023 are as follows:

Cost:		Land Lease				Office Lease				Total
Balance, December 31, 2021		$	2,418,706			$	—			$	2,418,706
Present value of lease payments			—				432,335				432,335
Accrued interest			103,816				17,059				120,875
Cash payments			—				(80,000	)			(80,000	)
Accounts payable			—				(20,000	)			(20,000	)
Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd. (note 5)			(2,375,590	)			—				(2,375,590	)
Movement in exchange rates			(146,932	)			(18,573	)			(165,505	)
Balance, December 31, 2022			—				330,821				330,821
Accrued interest			—				15,701				15,701
Cash payments			—				(60,000	)			(60,000	)
Accounts payable			—				(60,000	)			(60,000	)
Movement in exchange rates			—				18,574				18,574
Balance, June 30, 2023		$	—			$	245,096			$	245,096

During the year ended December 31, 2022, the Company derecognized the lease liability with a net book value of $2,375,590 (2021–$2,418,706) in connection with the loss of control of Bophelo Bio & Wellness (Pty) Ltd.

The Company has committed to the following undiscounted minimum lease payments remaining as at June 30, 2023:

Year ended December 31:
2023		$	120,000
2024			140,000
		$	260,000

13. Lease Liability

		Maturity		Incremental borrowing rate			December 31, 2022			December 31, 2021
Current		2022		10.25	%		$	214,058		$	439,709
Non-current		2023 – 2039		10.25	%			116,763			1,978,997
							$	330,821		$	2,418,706

On August 1, 2022, the Company entered into a lease agreement for an office space with a monthly lease payment of $20,000 over a period of two years. Under IFRS 16, the Company recognizes lease liabilities measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate.

The details of the lease liability recognized as at December 31, 2022 are as follows:

Cost:		Land Lease				Office Lease				Total
Balance, December 31, 2021		$	2,418,706			$	—			$	2,418,706
Present value of lease payments			—				432,335				432,335
Accrued interest			103,816				17,059				120,875
Cash payments			—				(80,000	)			(80,000	)
Accounts payable			—				(20,000	)			(20,000	)
Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd. (note 5)			(2,375,590	)			—				(2,375,590	)
Movement in exchange rates			(146,932	)			(18,573	)			(165,505	)
Balance, December 31, 2022		$	—			$	330,821			$	330,821

As at December 31, 2022, the Company derecognized the lease liability with a net book value of $2,375,590 (2021 — $2,418,706) in connection with the loss of control of Bophelo Bio & Wellness (Pty) Ltd.

The Company has committed to the following undiscounted minimum lease payments remaining as at December 31, 2022:

Year ended December 31:
2023		$	240,000
2024			140,000
		$	380,000

9. Lease liability

As at December 31:		Maturity		Incremental borrowing rate			2021			2020
Current		2022		10.25	%		$	439,709		$	283,976
Non-current		2023 – 2039		10.25	%			1,978,997			2,598,176
							$	2,418,706		$	2,882,152

The Company has committed to the following undiscounted minimum lease payments remaining as at December 31, 2021:

Year ended December 31:
2022		$	108,628
2023			260,708
2024			260,708
2025			260,708
2026			260,708
Thereafter			3,193,669
		$	4,345,129