12.

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 quarter ended

March 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 accounts for the lease in accordance with ASU

2016

(Topic

842

) and has recognized 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.

The minimum lease payments under these operating leases are approximately as follows:


2020	$	22,389
2021		45,328
2022		46,420
2023		47,512
2024		11,946

The Company paid rent expense totaling

$29,845

for the quarter ended

September 30, 2020 (

September 30, 2019 -

$22,109

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, 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

GBP5,000

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

September 30, 2020,

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

As at

September 30, 2020,

there are

further commitments to pay minimum guarantee payments for royalties on the revenue from the licenses.

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

$9,984

(

September 30, 2019 -

$16,458

) for the quarter ended

September 30, 2020,

and

$36,987

(

September 30, 2019 -

$44,332

) for the

nine

months ended

September 30, 2020.