Property and Equipment |
9. Property, Plant and Equipment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | Capital | | | | | | | | | and | | Leasehold | | Motor | | | | | and | | work-in- | | | | Cost | | Land | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2020 | | $ | — | | $ | 586,360 | | $ | 293,437 | | $ | 36,998 | | $ | — | | $ | — | | $ | 883,145 | | $ | 1,799,940 | Additions | | | — | | | 53,808 | | | 493,136 | | | 14,214 | | | 10,427 | | | 4,887 | | | — | | | 576,472 | Reclassifications | | | — | | | — | | | 360,695 | | | — | | | — | | | — | | | (360,695) | | | — | Foreign exchange movements | | | — | | | (50,157) | | | (57,574) | | | (3,589) | | | (303) | | | (192) | | | (58,197) | | | (170,012) | Balance, December 31, 2021 | | $ | — | | $ | 590,011 | | $ | 1,089,694 | | $ | 47,623 | | $ | 10,124 | | $ | 4,695 | | $ | 464,253 | | $ | 2,206,400 | Acquisitions (note 4) | | | 872,336 | | | 11,817,462 | | | — | | | 89,513 | | | 32,703 | | | 124,360 | | | — | | | 12,936,374 | Additions | | | — | | | 108,933 | | | 66,110 | | | 10,489 | | | 13,348 | | | 3,435 | | | 108,631 | | | 310,946 | Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd. | | | — | | | (663,404) | | | (1,088,572) | | | (54,767) | | | (14,851) | | | (5,436) | | | (437,117) | | | (2,264,147) | Foreign exchange movements | | | 12,901 | | | 282,219 | | | (67,232) | | | (603) | | | 1,115 | | | 2,181 | | | (135,767) | | | 94,814 | Balance, December 31, 2022 | | $ | 885,237 | | $ | 12,135,221 | | $ | — | | $ | 92,255 | | $ | 42,439 | | $ | 129,235 | | $ | — | | $ | 13,284,387 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | | | | | | | | | | | and | | Leasehold | | Motor | | | | | and | | Capital work-in- | | | | Accumulated depreciation | | Land | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2020 | | $ | — | | $ | 123,710 | | $ | 36,324 | | $ | 13,874 | | $ | — | | $ | — | | $ | — | | $ | 173,908 | Depreciation | | | — | | | 63,785 | | | 78,352 | | | 11,208 | | | 1,245 | | | 483 | | | — | | | 155,073 | Foreign exchange movements | | | — | | | (12,641) | | | (6,053) | | | (1,577) | | | (39) | | | (19) | | | — | | | (20,329) | Balance, December 31, 2021 | | $ | — | | $ | 174,854 | | $ | 108,623 | | $ | 23,505 | | $ | 1,206 | | $ | 464 | | $ | — | | $ | 308,652 | Depreciation | | | — | | | 972,872 | | | — | | | 27,883 | | | 22,942 | | | 13,490 | | | — | | | 1,037,187 | Depreciation – Bophelo | | | — | | | 32,549 | | | 49,538 | | | 6,577 | | | 20,832 | | | 463 | | | — | | | 109,959 | Impact of loss of control of Bophelo Bio Science & Wellness (Pty) Ltd. | | | — | | | (195,441) | | | (149,161) | | | (28,357) | | | (2,877) | | | (876) | | | — | | | (376,712) | Foreign exchange movements | | | — | | | 68,415 | | | (9,000) | | | 911 | | | (15,759) | | | 1,230 | | | — | | | 45,797 | Balance, December 31, 2022 | | $ | — | | $ | 1,053,249 | | $ | — | | $ | 30,519 | | $ | 26,344 | | $ | 14,771 | | $ | — | | $ | 1,124,883 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | Capital | | | | | | | | | and | | Leasehold | | Motor | | | | | and | | work-in- | | | | Net book value | | Land | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2021 | | $ | — | | $ | 415,157 | | $ | 981,071 | | $ | 24,118 | | $ | 8,918 | | $ | 4,231 | | $ | 464,253 | | $ | 1,897,748 | Balance, December 31, 2022 | | $ | 885,237 | | $ | 11,081,972 | | $ | — | | $ | 61,736 | | $ | 16,095 | | $ | 114,464 | | $ | — | | $ | 12,159,504 |
9. Property, Plant and Equipment (continued) As at December 31, 2022, the Company derecognized property, plant and equipment with a net book value of $1,887,435 in connection with the loss of control of Bophelo Bio Science and Wellness (Pty) Ltd. As at December 31, 2021, the Company’s capital work in progress related to the ongoing civil, gravelling, storm drainage work on site, as well as the construction of hoop houses and a Cravo A-Frame style greenhouse for future medical cannabis cultivation in Bophelo, Lesotho, which was derecognized at December 31, 2022 as a result of the loss of control of Bophelo Bio Science and Wellness (Pty) Ltd (note 5). During the year ended December 31, 2022, the Company recorded depreciation of its property, plant and equipment of $1,147,146 (2021 – $155,073) of which $109,959 (2021 – $154,595) related to the operations of Bophelo Bio Science and Wellness (Pty) Ltd was recorded within discontinued operations.
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6. Property and equipment | | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | Capital | | | | | | and | | Leasehold | | Motor | | | | | and | | work-in- | | | | Cost | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2019 | | $ | 449,044 | | $ | 304,770 | | $ | 38,427 | | $ | — | | $ | — | | $ | 616,377 | | $ | 1,408,618 | Additions | | | 172,369 | | | — | | | — | | | — | | | — | | | 266,768 | | | 439,137 | Write-offs | | | (23,748) | | | — | | | — | | | — | | | — | | | — | | | (23,748) | Foreign exchange movements | | | (11,305) | | | (11,333) | | | (1,429) | | | — | | | — | | | — | | | (24,067) | Balance, December 31, 2020 | | $ | 586,360 | | $ | 293,437 | | $ | 36,998 | | $ | — | | $ | — | | $ | 883,145 | | $ | 1,799,940 | Additions | | | 53,808 | | | 493,136 | | | 14,214 | | | 10,427 | | | 4,887 | | | — | | | 576,472 | Reclassifications | | | — | | | 360,695 | | | — | | | — | | | — | | | (360,695) | | | — | Foreign exchange movements | | | (50,157) | | | (57,574) | | | (3,589) | | | (303) | | | (192) | | | (58,197) | | | (170,012) | Balance, December 31, 2021 | | $ | 590,011 | | $ | 1,089,694 | | $ | 47,623 | | $ | 10,124 | | $ | 4,695 | | $ | 464,253 | | $ | 2,206,400 |
| | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | | | | | | Accumulated | | and | | Leasehold | | Motor | | | | | and | | Capital work-in- | | | | depreciation | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2019 | | $ | 67,113 | | $ | 22,489 | | $ | 4,803 | | $ | — | | $ | — | | $ | — | | $ | 94,405 | Depreciation | | | 60,212 | | | 14,950 | | | 9,425 | | | — | | | — | | | — | | | 84,587 | Foreign exchange movements | | | (3,615) | | | (1,115) | | | (354) | | | — | | | — | | | — | | | (5,084) | Balance, December 31, 2020 | | $ | 123,710 | | $ | 36,324 | | $ | 13,874 | | $ | — | | $ | — | | $ | — | | $ | 173,908 | Depreciation | | | 63,785 | | | 78,352 | | | 11,208 | | | 1,245 | | | 483 | | | — | | | 155,073 | Foreign exchange movements | | | (12,641) | | | (6,053) | | | (1,577) | | | (39) | | | (19) | | | — | | | (20,329) | Balance, December 31, 2021 | | $ | 174,854 | | $ | 108,623 | | $ | 23,505 | | $ | 1,206 | | $ | 464 | | $ | — | | $ | 308,652 |
| | | | | | | | | | | | | | | | | | | | | | | | Plant | | | | | | | | | | | Furniture | | Capital | | | | | | and | | Leasehold | | Motor | | | | | and | | work-in- | | | | Net book value | | equipment | | Improvements | | Vehicles | | Computers | | fixtures | | progress | | Total | Balance, December 31, 2020 | | $ | 462,650 | | $ | 257,113 | | $ | 23,124 | | $ | — | | $ | — | | $ | 883,145 | | $ | 1,626,032 | Balance, December 31, 2021 | | $ | 415,157 | | $ | 981,071 | | $ | 24,118 | | $ | 8,918 | | $ | 4,231 | | $ | 464,253 | | $ | 1,897,748 |
As at December 31, 2021 and 2020 the Company’s Capital work in progress relate to the ongoing civil, gravelling, storm drainage work on site, as well as the construction of hoop houses and a Cravo A-Frame style greenhouse for future medical cannabis cultivation in Bophelo Bio Science in Lesotho. The Company considered indicators of impairment at December 31, 2021 and 2020. The Company did not record any impairment loss during the year ended December 31, 2021 (2020 – $23,748, 2019 – nil).
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