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Lease Liabilities
6 Months Ended
Aug. 31, 2023
Leases [Abstract]  
Lease Liabilities
8.Lease Liabilities
The Company commenced the leasing of two motor vehicles on May 23, 2018, and October 10, 2018, for a term of five years each. The monthly minimum lease payments were for $359 (R6,658) and $510 (R9,456). The motor vehicle leases are classified as finance leases. The interest rate underlying the obligation in the leases are both 11.25% per annum. During the six months August 31, 2023, the Company paid a total of $1,088 (2022 - $6,102) in principal and interest payments on the two motor vehicle leases.
 
On November 14, 2022, the Company settled one of the motor vehicle finance leases for a settlement fee of $2,842 (R47,351) resulting in a gain on settlement of $273 (R4,549). Upon the payment of the settlement fee, the vehicle title was transferred immediately to the Company and has been allocated to the Company’s property and equipment to be depreciated over the remainder of its useful life.
 
On May 10, 2023, the Company settled the second motor vehicle finance leases for a settlement fee of $2,549 (R47,204
) resulting in a gain on settlement of $1,052 (R19,480). Upon the payment of the settlement fee, the vehicle title was transferred immediately to the Company and has been allocated to the Company’s property and equipment to be depreciated over the remainder of its useful life.
 
On February 1, 2021, the Company entered a two-year lease with a renewal option for office space in South Africa. The term of the renewal agreement is for an additional two years and commences on February 1, 2023. Rental payments are due at the beginning of each month and increase at an annual rate of 7%. The base monthly rental rate is $1,187 (R22,000) for the first year, $1,270 (R23,540) in the second year, $1,672 (R25,188) in the third year, and $1,772 (R26,951) in the final year of the lease. On January 26, 2023, the Company executed the renewal option for two additional years of its lease, commencing on February 1, 2023. Rental payments are due at the beginning of each month. The base monthly rental rate is $1,672 (R31,000) for the first year and $1,772 (R32,860) in the second year. The office space lease was classified as an operating lease. The interest rate underlying the obligation in the lease was 7% per annum.
 
The following is a schedule by years of future minimum lease payments under the remaining finance leases together with the present value of the net minimum lease payments as of August 31, 2023:
 
Years ending February 28: 
Building Lease
(Operating Lease)
   
2024 $10,053 
2025  19,343 
     
Net minimum lease payments  29,396 
Less: amount representing interest payments  (1,505)
     
Present value of net minimum lease payments  27,891 
Less: current portion  (19,251)
     
Long-term portion $8,640