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LEASES
12 Months Ended
Aug. 31, 2021
Leases [Abstract]  
LEASES [Text Block]

5. LEASES

The Company entered into an office lease agreement commencing July 1, 2017 and expiring June 30, 2022 consisting of approximately 6,600 square feet.

On adoption of ASC 842, Lease Accounting, the Company recognized right-of-use assets and a corresponding increase in lease liabilities, in the amount of $671,911 which represented the present value of future lease payments using a discount rate of 8% per year. Property tax and insurance payments paid to the lessor are included in the calculation of future lease payments.

Right of Use Asset Continuity   2021     2020  
    $     $  
Balance, September 1   403,961     671,911  
Lease Inducement   -     (47,607 )
    403,961     624,304  
Depreciation   (224,154 )   (213,935 )
Foreign Currency Translation Adjustment   10,446     (6,408 )
Balance, August 31   190,253     403,961  

 

The Company has operating lease payments committed as follows:

    $  
       
2022   235,388  
Total lease payments payable   235,388  
Less amounts representing interest   (8,410 )
Total Operating Lease Liability   226,978  
Less current portion of operating lease liability   (226,978 )
Long term portion of operating lease liability   -  
 
Operating Lease Liability Continuity   2021     2020  
    $     $  
Balance, September 1   457,324     671,911  
Less Lease Payments   (270,898 )   (253,040 )
Interest   28,714     44,692  
Foreign Currency Translation Adjustment   11,838     (6,239 )
Balance, August 31   226,978     457,324  

 

During the year ended August 31, 2021 the Company recorded depreciation expense of $224,154 (2020 - $213,935) which has been allocated between general and administrative expenses, research and development and sales and marketing on the consolidated statement of comprehensive income. The total rent commitment, net of the leasehold improvement allowance, is being amortized to rent expense on a straight-line basis over the term of the lease.