Right of use assets

9 Months Ended

Sep. 30, 2021

Right Of Use Assets

Right of use assets

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. 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 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.

Kidoz Inc. and subsidiaries

(Expressed in United States Dollars)

Notes to Consolidated Financial Statements

Nine Months ended September 30, 2021 and 2020

(Unaudited)

12. Right of use assets: (Continued)

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

	September 30, 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		(33,481	)		(54,071	)
Closing balance for the period	$	72,834		$	106,315

The operating lease as at September 30, 2021, is summarized as follows:

As at September 30, 2021	Operating lease- Office lease
2021	$	8,283
2022		33,992
2023		35,140
2024		8,107
Total lease payments	$	85,522
Less: Interest		(3,580	)
Present value of lease liabilities	$	81,942
Amounts recognized on the balance sheet
Current lease liabilities	$	31,957
Long-term lease liabilities		49,985
Total lease payments	$	81,942

	September 30, 2021			December 31, 2020
Opening balance for the period	$	103,918		$	127,615
Payments on operating lease liabilities		(21,976	)		(23,697	)
Closing balance for the period		81,942			103,918
Less: current portion		(31,957	)		(30,083	)
Operating lease liabilities – non-current portion as at end of period	$	49,985		$	73,835