Fixed Assets

9 Months Ended

Sep. 30, 2024

Fixed Assets

Fixed Assets

7.     Fixed Assets

The Company’s subsidiary, Canary, initiated construction on its leased 44,000 square foot cannabis cultivation facility in September of 2017. Since then, extensive demolition and structural upgrades have been carried out at the site. On May 1, 2019, the Company completed the construction of its 44,000 square foot cannabis cultivation facility and on May 14, 2019, the Company submitted a Site Evidence Package to Health Canada as part of the steps to obtain the license to cultivate cannabis at the Company’s facility. On October 8, 2019, the Company was granted licenses to cultivate, process and sell cannabis pursuant to the Cannabis Act (Bill C-45). Canary currently operates as a licensed producer/wholesaler of craft cannabis in Ontario and has since been granted its sales amendment from Health Canada to sell directly to provincial retail boards for consumer products.

Canary has recorded a depreciation expense of $623,337 during the nine months ended September 30, 2024 (September 30, 2023: $641,183) while CannaKorp has recorded a depreciation expense of $111 during the nine months ended September 30, 2024 (September 30, 2023: $371). JVCo recorded depreciation of $22,842 during the nine months ended September 30, 2024 (September 30, 2023: $ 38,489).

Below is a breakdown of the consolidated fixed asset, category wise:

	Furniture &	Machinery &		Leasehold
	fixture	Equipment	Software	improvements	Total
	$	$	$	$	$
Cost	1,426,648	770,293	51,894	6,798,968	9,047,803
Accumulated depreciation	(714,737)	(760,502)	(44,257)	(2,842,001)	(4,361,497)
	711,911	9,791	7,637	3,956,967	4,686,306