13.

Commitments:

The Company leases office facilities in Vancouver, British Columbia, Canada, The Valley, Anguilla, British West Indies and Netanya, Israel. These office facilities are leased under operating lease agreements.

During the year ended

December 31, 2019,

the Company signed a

five

-year lease for a facility in Vancouver, Canada, commencing

April 1, 2019

and ending

March 2024.

This facility comprises approximately

1,459

square feet. The Company will account for the lease in accordance with ASU

2016

(Topic

842

) and will recognize a right-of-use asset and operating lease liability.

The Netanya, Israel operating lease expired on

July 14, 2017

but unless

month’s notice is given it automatically renews for a future

months until notice is given. During the year ended

December 31, 2019,

the lease was extended for a further

months. This facility comprises approximately

190

square metres. The Company has accounted for this lease as a short-term lease.

The Anguillan operating lease expired on

April 1, 2011

but unless

month’s notice is given it automatically renews for a further

months. The Company will account for the lease in accordance with ASU

2016

(Topic

842

) and will recognize a right-of-use asset and operating lease liability.

Minimum lease payments under these leases are approximately as follows:


2020	$	70,344
2021		43,814
2022		44,935
2023		46,056
2024		11,584

The Company paid rent expense totaling

$93,371

for the year ended

December 31, 2019 (

2018

$28,287

The Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. T. M. Williams. During the year ended

December 31, 2014,

the Company amended a previous agreement with Mr. T. M. Williams to provide for a consultancy payment of

2.5%

of the monthly social bingo business with a minimum of

$11,000

and a maximum of

$25,000

per month.

During the year ended

December 31, 2014,

the Company entered into an agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Co-Chief Executive Officer of the Company for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of

GBP£5,000

per month. In addition, during the year ended

December 31, 2014,

the Company entered into an agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement provides for a consultancy payment of

2.5%

of the monthly social bingo business with a minimum of

$7,500

and a maximum of

$25,000

per month.

As at

December 31, 2019,

the Company had a number of renewable license commitments with large brands, including, Garfield, Moomins, Mr Men and Little Miss, Mr. Bean, Peter Rabbit,

Pororo and the Winx club. These agreements have commitments to pay royalties on the revenue from the licenses subject to the following minimum guarantee payments:


2020	$	3,000
2021		-

The Company expensed the minimum guarantee payments over the life of the agreement and recognized license expense of

$56,564

(

2018

$32,009

) for the year ended

December 31, 2019.