Note 12 - Right-of-use Assets

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

12.

       

Right of use assets:

There is

no

discount rate implicit in the Anguilla office operating lease agreement, so the Company estimated a

5%

discount rate for the incremental borrowing rate for the lease as of the adoption date,

January 1, 2019.

There is

no

discount rate implicit in the license agreement, so the Company estimated a

12%

discount rate for the incremental borrowing rate for the licenses as of the adoption date,

January 1, 2019.

Effective

April 1, 2019,

we recognized lease assets and liabilities of

$125,474

,

in relation to the Vancouver office. We estimated a discount rate of

4.12%.

We elected the package of practical expedients permitted under the transition guidance within Topic

842,

which allowed us to carry forward prior conclusions about lease identification, classification and initial direct costs for leases entered into prior to adoption of Topic

842.

Additionally, we elected to

not

separate lease and non-lease components for all of our leases. For leases with a term of

12

months or less, our current offices, we elected the short-term lease exemption, which allowed us to

not

recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we

may

enter into in the future, as there is significant uncertainty on whether the leases will be renewed.

The right-of-use assets are summarized as follows:

	March 31, 2021			December 31, 2020
Opening balance for the period	$	106,315		$	134,914
Capitalization of additional license leases		-			25,472
Amortization of operating lease right-of use assets		(17,509	)		(54,071	)
Closing balance for the period	$	88,806		$	106,315

The operating lease as at

March 31, 2021,

is summarized as follows:

As at March 31, 2021	Operating lease - Office lease
2021	$	25,062
2022		34,284
2023		35,443
2024		8,183
Total lease payments	$	102,972
Less: Interest		(4,302	)
Present value of lease liabilities	$	98,670
Amounts recognized on the balance sheet
Current lease liabilities	$	32,064
Long-term lease liabilities		66,606
Total lease payments	$	98,670

	March 31, 2021			December 31, 2020
Opening balance for the period	$	103,918		$	127,615
Payments on operating lease liabilities		(5,248	)		(23,697	)
Closing balance for the period		98,670			103,918
Less: current portion		(32,064	)		(30,083	)
Operating lease liabilities - non-current portion as at end of period	$	66,606		$	73,835