Right of Use Assets and Lease Liability

9 Months Ended

Sep. 30, 2024

Right Of Use Assets And Lease Liability

9. Right of Use Assets and Lease Liability

The Company has entered into lease agreements with various third parties. The terms of the Company’s operating leases range from 12 to 94 months. These operating leases are included in “Right of Use Assets” on the Company’s Consolidated Interim Balance Sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments is included in “Lease liability” on the Company’s Consolidated Interim Balance Sheets. Additionally, the Company has entered into various short-term operating leases with an initial term of 12 months or less. These leases are not recorded on the Company’s Consolidated Interim Balance Sheets. All operating lease expense is recognized on a straight-line basis over the lease term.

	September 30,			December 31,
	2024			2023
Right-of-use asset
Right-of-use asset, net	$	1,519,890		$	1,688,003

Lease liability
Current lease liability	$	199,925		$	183,913
Non-current lease liability		1,422,772			1,559,818
Total lease liability	$	1,622,697		$	1,743,731

Remaining lease term and discount rate
Weighted average remaining lease term		75 months			84 months
Discount rate used		10	%		10	%

Commitments

The following table summarizes the future minimum lease payments due under the Company’s operating leases as of September 30, 2024:


Remainder of 2024	$	88,713
Thereafter		2,119,398
Less: imputed interest		(585,414	)
Total	$	1,622,697

Sustainable Projects Group Inc. 10-Q