Right of use assets

12 Months Ended

Dec. 31, 2022

Right of use assets

Right Of Use Assets

8. Right of use assets

	December 31, 2022
	Cost		Accumulated		Right of
	Base		Amortization		Use
Aircraft	$	1,847,617	$	1,407,743	$	439,874
Office Building		1,725,414		915,773		809,641
Printer		9,716		139		9,577
		3,582,747		2,323,655		1,259,092
	December 31, 2021
	Cost		Accumulated		Right of
	Base		Amortization		Use
Aircraft	$	1,870,808	$	1,073,365	$	797,443
Office Building		1,805,447		664,372		1,141,075
Printer		17,794		13,060		4,734
		3,694,049		1,750,797		1,943,252

In the fourth quarter of 2021, the Company determined it was reasonably certain it would extend the term of its Aircraft Leasing Agreement effective in the second quarter of 2022 for a period of 24 months with payments of approximately US$22,500 (CDN$28,675) per month, or US$270,000 (CDN$344,099) per year. The incremental borrowing rate is 11.2%. The Company recognized an additional $615,737 Aircraft ROU assets and US$493,166 ($630,266) additional Lease obligations at December 31, 2021. Should NXT want to repurchase the aircraft at the end of the extended term, the purchase price will be US$1.21 million.

On March 15, 2022, the Company surrendered 826 square feet of its office building lease to the landlord. The Company incurred a surrender fee of $14,000. The Company derecognized the following amounts on its balance sheet in the first quarter.

Right of Use Assets	$	80,033
Lease obligations		83,095