16. Right of Use Asset and Operating Lease Liability

The Company has lease agreements for its offices, data centers and equipment.

Right of use assets

    2026     2025  
Cost $ 53,108   $ 12,704  
Accumulated amortization   (10,011 )   (7,158 )
Net carrying value $ 43,096   $ 5,546  

Lease liabilities

    Operating Leases     Finance Leases     Total  
    2026     2025     2026     2025     2026     2025  
Current $ 3,323   $ 2,645   $ 9,045   $ -   $ 12,368   $ 2,645  
Non-current   10,351     3,095     20,861     -     31,212     3,095  
  $ 13,674   $ 5,740   $ 29,906   $ -   $ 43,580   $ 5,740  

 

    2026     2025  
Operating Leases            
Weighted average discount rate   7.27%     6.00%  
Weighted average remaining lease term (in years)   4.85     2.42
           
Financing Leases            
Weighted average discount rate   9.90%     -  
Weighted average remaining lease term (in years)   3.00     -  

 

Additional information on the lease liabilities as at March 31, 2026 is as follows:

    Operating
leases
    Finance leases     Total  
2027 $ 4,155   $ 11,404   $ 15,559  
2028   3,154     11,404     14,558  
2029   2,407     11,405     13,812  
2030   2,180     -     2,180  
Thereafter   4,423     -     4,423  
Total undiscounted lease liabilities   16,319     34,213     50,532  
Interest on lease liabilities   (2,645 )   (4,307 )   (6,952 )
Total present value of minimum lease payments $ 13,674   $ 29,906   $ 43,580  
Lease liability - current portion $ 3,323   $ 9,045   $ 12,368  
Lease liability $ 10,351   $ 20,861   $ 31,212  

Additional information on the lease liabilities as at March 31, 2025 is as follows:

    Operating
leases
    Finance leases     Total  
2026 $ 2,900   $ -   $ 2,900  
2027   2,014     -     2,014  
2028   981     -     981  
2029   251     -     251  
Total undiscounted lease liabilities   6,146     -     6,146  
Interest on lease liabilities   (406 )   -     (406 )
Total present value of minimum lease payments $ 5,740   $ -   $ 5,740  
Lease liability - current portion $ 2,645   $ -   $ 2,645  
Lease liability $ 3,095   $ -   $ 3,095  

The Company incurred the following lease costs which were recorded in operating and maintenance costs in the consolidated statements of loss and comprehensive loss:

    2026     2025     2024  
Variable lease costs (CPI adjustments) $ 418   $ 281   $ 176   
Operating lease costs:                  
Depreciation of lease assets   2,790     2,402   $ 2,181  
Interest on lease liabilities   341     392     511  
                   
Finance lease costs:                  
Depreciation of lease assets   800     -     -  
Interest on lease liabilities   239     -     -  
Total lease costs $ 4,588   $ 3,075     2,868  

Cash paid for amounts included in the measurement of lease liabilities:

    2026     2025     2024  
Cash flows from operating leases $ 3,381   $ 2,794   $ 2,687  
Cash flows from finance leases $ -   $ -   $ -  
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About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.