LEASES |
9 Months Ended | ||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||
Leases | |||||||||||||||||||||
LEASES |
10. LEASES
Upon adoption of Topic 842 effective January 1, 2022, the Company recognized operating lease liabilities of $1,776,599 and corresponding right-of-use (“ROU”) assets of $1,837,782. The difference between operating lease liabilities and right-of-use assets recognized is due to prepaid rent and deferred rent recorded under prior lease accounting standards. Topic 842 requires such balances to be reclassified against right-of-use assets at transition. In future periods such balances will not be presented separately.
The components of lease expenses were as follows:
The Company has an operating lease for its office lease in Canada with a remaining lease term of seven years. The discount rate was 7.0%. The Company has no finance leases.
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