Note 7: Leases

 

In May 2023 US GoldMining Canada Inc. entered into a sublease agreement to lease a portion of an office premises in Vancouver, British Columbia with a term of 5.33 years. In September 2023 the headlease under which the Company leased its office space was terminated by the landlord as it pertained to its sub-lessor. As a result, the sublease for the office space was terminated. In November 2023 US GoldMining Canada Inc. entered into a new lease directly with the landlord with a term of 4.88 years. As of December 31, 2024, the remaining lease term was 3.75 years and the incremental borrowing rate was 11.34%.

 

 

U.S. GOLDMINING INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in U.S. Dollars)

 

 

 

Minimum future lease payments under operating lease with terms longer than one year are as follows:

 

      
Fiscal 2025   35,412 
Fiscal 2026   36,165 
Fiscal 2027   36,165 
Fiscal 2028   24,110 
Total lease payments   131,852 
Less: imputed interest   (22,458)
Present value of lease liabilities  $109,394 
      
Current portion of lease liabilities  $25,144 
Non-current portion of lease liabilities  $84,250 

 

During the year ended December 31, 2024, one month ended December 31, 2023, and year ended November 30, 2023, total lease expenses include the following components:

 

   Year Ended December 31   Month Ended December 31   Year Ended November 30 
   2024   2023   2023 
Operating Leases  $35,975   $3,057   $10,735 
Short-term Leases   5,400    350    21,919 
Total Lease Expenses  $41,375   $3,407   $32,654 

 

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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.