Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
9 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases
8. Leases

 

The Company's subsidiaries have entered into three long-term operating leases for office premises in London, United Kingdom, Lysaker, Norway and North Vancouver, Canada. These lease assets are categorized as right of use assets under ASU No. 2016-02.

 

Long-term premises lease   Lease
commencement
  Lease
expiry
  Term
(years)
    Discount
rate*
 
                     
London, United Kingdom   April 1, 2019   December 25, 2023     4.75       4.50 %
Lysaker, Norway   October 1, 2019   September 30, 2024     5.00       4.50 %
North Vancouver, Canada   December 1, 2019   August 31, 2022     2.75       4.50 %

 

* The Company determined the discount rate with reference to mortgages of similar tenure and terms.

 

Operating lease assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company's operating lease does not provide an implicit rate, the discount rate used to determine the present value of the lease payments is the collateralized incremental borrowing rate based on the remaining lease term. The operating lease asset excludes lease incentives. The operating leases do not contain an option to extend or terminate the lease term at the Company's discretion, therefore no probable renewal has been added to the expiry date when determining lease term. Operating lease expense is recognized on a straight-line basis over the lease term.

 

Lease cost – for the nine months ended December 31, 2019:        
Operating lease expense *   $ 302,131  

 

* Including right of use amortization and imputed interest

 

The Company has entered into premises lease agreements with minimum annual lease payments expected over the next five years of the lease as follows:

 

Fiscal Year   $  
       
2020 (remainder of year)     132,204  
2021     528,814  
2022     528,814  
2023     505,581  
2024     278,755  
2025     34,262  
Total future minimum lease payments     2,008,430  
Imputed interest     (172,164 )
         
Operating lease obligations     1,836,266