Note 11 - Commitments

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

11.

        

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

-

02

(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

3

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

12

months until notice is given. During the year ended

December 31, 2020,

the lease was extended for a further

12

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

3

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

3

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

2016

-

02

(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:

2021	$	49,129
2022		49,267
2023		50,426
2024		12,679

The Company paid rent expense totaling

$32,419

for the quarter ended

March 31, 2021 (

March 31, 2020 -

$25,873

). 

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

sterling 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

March 31, 2021,

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

March 31, 2021,

there are

no

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

$8,814

(

March 31, 2020 -

$16,882

) for the quarter ended

March 31, 2021.