| Lease Obligations |
13. Lease obligations | | For the year ended December 31, | | | | 2025 | | | 2024 | | Opening balance, January 1 | | $ | 2,301,542 | | | $ | 595,517 | | Additions | | | - | | | | 2,252,803 | | Operating lease payments | | | (240,676 | ) | | | (364,712 | ) | Finance lease principal payments | | | (565,969 | ) | | | (359,706 | ) | Lease accretion | | | 113,041 | | | | 99,803 | | Foreign exchange | | | (34,636 | ) | | | 77,837 | | Closing Balance | | | 1,573,302 | | | | 2,301,542 | | Current portion of lease obligations | | | 752,378 | | | | 693,607 | | Long-term lease obligations | | | 820,924 | | | | 1,607,935 | |
Maturity of lease liabilities: | | Finance Lease1. | | | Operating Leases | | | Total | | 2026 | | | 661,816 | | | | 240,391 | | | | 902,207 | | 2027 | | | 111,248 | | | | 237,252 | | | | 348,500 | | 2028 | | | - | | | | 237,252 | | | | 237,252 | | 2029 | | | - | | | | 237,252 | | | | 237,252 | | 2030 | | | - | | | | 177,939 | | | | 177,939 | | Total lease payments | | | 773,064 | | | | 1,130,086 | | | | 1,903,150 | | Less imputed interest | | | (55,078 | ) | | | (274,770 | ) | | | (329,848 | ) | Total discounted lease payments | | | 717,986 | | | | 855,316 | | | | 1,573,302 | | Current portion of lease obligations | | | 608,404 | | | | 143,974 | | | | 752,378 | | Non-current portion of lease obligations | | | 109,582 | | | | 711,342 | | | | 820,924 | |
1. Converted at 1.3723 As of December 31, 2025, the Company’s aircraft lease was a financing lease, and the other leases were operating leases. The weighted average incremental borrowing rate for all leases is 10.9%. None of the leases have an option to extend past their current terms. The weighted average remaining lease terms at December 31, 2025, is 3.1 years. The Company’s total operating lease expenditures for the period ended December 31, 2025, were $240,672 (2024 - $366,571). The Company’s total financing lease expenditures for the period ended December 31, 2025, was $676,105 (2024 - $495,233), including interest expense of approximately $124,741 (2024-$131,337). Lease expense for operating leases are included in general and administrative expenses, while finance lease expenses are included in both amortization and interest expense, net. Non-cash lease amortization and accretion | | For the years ended December 31, | | | | 2025 | | | 2024 | | | 2023 | | Amortization of lease incentives and other | | $ | (5,672 | ) | | $ | (9,997 | ) | | $ | (8,099 | ) | ROU asset amortization | | | 127,634 | | | | 263,627 | | | | 600,911 | | Lease liability accretion | | | 113,041 | | | | 99,803 | | | | 90,378 | | | | | 235,003 | | | | 353,433 | | | | 683,190 | |
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