Common use of LEASE LIABILITIES Clause in Contracts

LEASE LIABILITIES. The Company leases certain of its office premises for daily operations. These leases have remaining lease terms ranging from 1 to 5 years. At December 31, 2021, the total future minimum lease payments and their present values were as follows: Minimum lease payments As at December 31, Present value of minimum lease payments As at December 31, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ 2020 Amounts payable: Within one year $ 379 $ 272 $ 296 $ 202 In the second year 379 174 326 112 In the third to fifth year, inclusive 284 418 259 312 Total minimum finance lease payments $ 1,042 $ 864 $ 881 $ 626 Future finance charges (161) (238) Total net lease finance payables $ 881 $ 626 Portion classified as current liabilities (296) (202) Non-current portion $ 585 $ 424 On November 19, 2009, the Company issued a convertible debenture to a wholly owned subsidiary of CIC for $500,000. The convertible debenture is presented as a liability since it contains no equity components. The convertible debenture is a hybrid instrument, containing a debt host component and three embedded derivatives – the investor’s conversion option, the issuer’s conversion option and the equity based interest payment provision (the 1.6% share interest payment) (the “embedded derivatives”). The debt host component is classified as other-financial-liabilities and is measured at amortized cost using the effective interest rate method and the embedded derivatives are classified as fair value through profit or loss and all changes in fair value are recorded in profit or loss. The difference between the debt host component and the principal amount of the loan outstanding is accreted to profit or loss over the expected life of the convertible debenture. The embedded derivatives were valued upon initial measurement and subsequent periods using a Monte Carlo simulation valuation model. A Monte Carlo simulation model is a valuation model that relies on random sampling and is often used when modeling systems with a large number of inputs and where there is significant uncertainty in the future value of inputs and where the movement of the inputs can be independent of each other. Some of the key inputs used by the Company in its Monte Carlo simulation include: the floor and ceiling conversion prices, the Company’s common share price, the risk-free rate of return, expected volatility of the Company’s common share price, forward foreign exchange rate curves (between the CAD$ and U.S. dollar) and spot foreign exchange rates.

LEASE LIABILITIES. The Company leases certain of its office premises for daily operations. These leases have remaining lease terms ranging from 1 3 to 5 4 years. At December 31, 2021, the total future minimum lease payments and their present values were as follows: Minimum lease payments As at December 31, Present value of minimum lease payments As at December 31, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ 2020 Amounts payable: Within one year $ 379 $ 272 $ 296 $ 202 In the second year 379 174 326 112 In the third to fifth year, inclusive 284 418 259 312 Total minimum finance lease payments $ 1,042 $ 864 $ 881 $ 626 Future finance charges (161) (238) Total net lease finance payables $ 881 $ 626 Portion classified as current liabilities (296) (202) Non-current portion $ 585 $ 424 On November 19, 2009, the Company issued a convertible debenture to a wholly owned subsidiary of CIC for $500,000. The convertible debenture is presented as a liability since it contains no equity components. The convertible debenture is a hybrid instrument, containing a debt host component and three embedded derivatives – the investor’s conversion option, the issuer’s conversion option and the equity based interest payment provision (the 1.6% share interest payment) (the “embedded derivatives”). The debt host component is classified as other-financial-other financial liabilities and is measured at amortized cost using the effective interest rate method and the embedded derivatives are classified as fair value through profit or loss and all changes in fair value are recorded in profit or loss. The difference between the debt host component and the principal amount of the loan outstanding is accreted to profit or loss over the expected life of the convertible debenture. The embedded derivatives were valued upon initial measurement and subsequent periods using a Monte Carlo simulation valuation model. A Monte Carlo simulation model is a valuation model that relies on random sampling and is often used when modeling systems with a large number of inputs and where there is significant uncertainty in the future value of inputs and where the movement of the inputs can be independent of each other. Some of the key inputs used by the Company in its Monte Carlo simulation include: the floor and ceiling conversion prices, the Company’s common share price, the risk-free rate of return, expected volatility of the Company’s common share price, forward foreign exchange rate curves (between the CAD$ and U.S. dollar) and spot foreign exchange rates.

LEASE LIABILITIES. The Company leases certain of its office premises for daily operations. These leases have remaining lease terms ranging from 1 to 5 years. At December 31, 20212020, the total future minimum lease payments and their present values were as follows: Minimum lease payments As at December 31, Present value of minimum lease payments As at December 31, ▇▇▇▇ ▇▇▇▇ ▇▇▇▇ As at December 31, 2020 2019 2020 2019 Amounts payable: Within one year $ 379 $ 272 $ 296 509 $ 202 $ 460 In the second year 379 174 326 101 112 108 In the third to fifth year, inclusive 284 418 259 – 312 – Total minimum finance lease payments $ 1,042 $ 864 $ 881 610 $ 626 $ 568 Future finance charges (161238) (23842) Total net lease finance payables $ 881 626 $ 626 568 Portion classified as current liabilities (296202) (202460) Non-current portion $ 585 424 $ 424 108 On November 19, 2009, the Company issued a convertible debenture to a wholly owned subsidiary of CIC for $500,000. The convertible debenture is presented as a liability since it contains no equity components. The convertible debenture is a hybrid instrument, containing a debt host component and three embedded derivatives – the investor’s conversion option, the issuer’s conversion option and the equity based interest payment provision (the 1.6% share interest payment) (the “embedded derivatives”). The debt host component is classified as other-financial-liabilities and is measured at amortized cost using the effective interest rate method and the embedded derivatives are classified as fair value through profit or loss and all changes in fair value are recorded in profit or loss. The difference between the debt host component and the principal amount of the loan outstanding is accreted to profit or loss over the expected life of the convertible debenture. The embedded derivatives were valued upon initial measurement and subsequent periods using a Monte Carlo simulation valuation model. A Monte Carlo simulation model is a valuation model that relies on random sampling and is often used when modeling systems with a large number of inputs and where there is significant uncertainty in the future value of inputs and where the movement of the inputs can be independent of each other. Some of the key inputs used by the Company in its Monte Carlo simulation include: the floor and ceiling conversion prices, the Company’s common share price, the risk-free rate of return, expected volatility of the Company’s common share price, forward foreign exchange rate curves (between the CAD$ and U.S. dollar) and spot foreign exchange rates.