OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY

12 Months Ended

Mar. 31, 2024

OFFICE LEASE RIGHT OF USE ASSET AND LEASE LIABILITY

OFFICE LEASE - RIGHT OF USE ASSET AND LEASE LIABILITY

14. OFFICE LEASE – RIGHT OF USE ASSET AND LEASE LIABILITY

The Company subleases corporate offices in Vancouver, BC from HDSI under a lease agreement dated May 1, 2021, and the lease expires on April 29, 2026.

Right-of-use asset

A summary of the changes in the right-of-use asset for the year ended March 31, 2024 and the year ended March 31, 2024 are as follows:

Right-of-use-asset	($)
Balance at March 31, 2022		82,384
Amortization		(20,176	)
Balance at March 31, 2023		62,208
Amortization		(20,175	)
Balance at March 31, 2024		42,033

Lease liability

On May 1, 2021, the Company entered into the lease agreement, which resulted in the lease liability of $100,877 (undiscounted value of $134,766, discount rate used is 12.00%). This liability represents the monthly lease payment from May 1, 2021 to April 29, 2026, the end of the lease term less abatement granted by HDSI.

A summary of changes in the lease liability during the year ended March 31, 2024 and the year ended March 31, 2023 are as follows:

Lease liability	($)
Balance at March 31, 2022		90,028
Lease payment – base rent portion		(26,745	)
Lease liability – accretion expense		9,620
Balance as at Mach 31, 2023		72,903
Current portion		20,696
Long-term portion		52,207
Lease liability	($)
Balance at March 31, 2023		72,903
Lease payment – base rent portion		(28,056	)
Lease liability – accretion expense		7,360
Balance at March 31, 2024		52,207
Current portion		23,443
Long-term portion		28,764

The following is a schedule of the Company’s future lease payments (base rent portion) under the lease obligations:

Future lease payments (base rent portion only)	($)
Fiscal 2025 (April 1, 2024 to March 31, 2025)		28,165
Fiscal 2026 (April 1, 2025 to March 31, 2026)		28,165
Fiscal 2027 (April 1, 2026 to April 29, 2027) (Note 6)		2,347
Total undiscounted lease payments		58,677
Less: imputed interest		(6,470	)
Lease liability as at March 31, 2024		52,207