Commitments:

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments:

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 year ended December 31, 2020, the Company signed a five-year lease for a facility in Vancouver, Canada, commencing April 1, 2020 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 recognizes a right-of-use asset and operating lease liability.

The Netanya, Israel operating lease expired on July 14, 2017 but unless 3 months’ notice is given it automatically renews for a future 12 months until notice is given. During the year ended December 31, 2021, the lease was extended for a further 12 months. This facility comprises approximately 190 square metres. The renewal of this lease is uncertain, hence the Company has accounted for this lease as a short-term lease.

The Anguillan operating lease expired on April 1, 2011 but unless 3 months’ notice is given it automatically renews for a further 3 months. The Company expects this lease to continue. Therefore, the Company accounts for the lease in accordance with ASU 2016-02 (Topic 842) and recognizes a right-of-use asset and operating lease liability.

Kidoz Inc. and subsidiaries

(Expressed in United States Dollars)

Notes to Consolidated Financial Statements

Years ended December 31, 2021 and 2020

12. Commitments: (Continued)

Minimum lease payments under these leases are approximately as follows:

2022	$	64,516
2023		50,002
2024		12,572

The Company paid rent expense totaling $129,250 for the year ended December 31, 2021 (2020 - $119,055).

The Company has the following management consulting agreements with related parties.

Company	Person	Role	Minimum Monthly amount		Maximum Monthly amount
T.M. Williams (ROW), Inc.	T. M. Williams	Executive Chairman	$	11,000	$	25,000
Jayska Consulting Ltd.	J. M. Williams	Co-CEO		GBP£5,000		GBP£5,000
LVA Media Inc.	J. M. Williams	Co-CEO	$	7,500	$	25,000
Bromley Accounting Services Ltd.	H. W. Bromley	CFO		CAD$15,000		CAD$15,000
Farcast Operations Inc.	T. H. Williams	VP Product		CAD$15,000		CAD$15,000

As at December 31, 2021, the Company had a number of renewable license commitments with large brands, including, Mr. Men and Little Miss and Mr. Bean. These agreements have commitments to pay royalties on the revenue from the licenses subject to the minimum guarantee payments. As at December 31, 2021, there were no further minimum guarantee payments commitments.

The Company expensed the minimum guarantee payments over the life of the agreement and recognized license expense of $18,512 (2020 - $46,841) for the year ended December 31, 2021.