• Filing Date: 2012-09-13
  • Form Type: 10-Q
  • Description: Quarterly report
v2.4.0.6
Commitments
3 Months Ended
Jul. 31, 2012
Commitments [Text Block]
Note 7 Commitments

  a)

On April 29, 2005, the Company entered into a lease for office premises, which commenced on October 1, 2005 and expires on September 30, 2012 for which a deposit of $9,890 was made. The monthly lease payment under this agreement is $9,890 plus $8,666 in operating costs. The Company is subleasing part of these premises for a monthly charge of $7,476. The sublease commenced on August 1, 2007 and expires on September 30, 2012.

     
  b)

On January 11, 2011, the Company entered into a lease agreement, which commenced on October 1, 2011, and expires September 30, 2014 for which a deposit of $49,805 was made. The monthly lease payment under the agreement is $21,579 plus $21,182 in operating costs. Management believes that this office space is adequate for the operations of the Company for the foreseeable future.

     
  c)

On December 9, 2011, the Company signed a fifth amendment to an existing lease agreement to extend the lease starting May 1, 2012 to April 30, 2014. The monthly lease payment under the new lease extension is $7,008 (CDN$7,036).T his lease expense is a related party transaction as it was incurred with a company with a director in common with the Company.

     
  d)

On March 12, 2009, the Company and its wholly-owned subsidiary, CounterPath Technologies Inc., entered into a settlement agreement with a founder and former officer of the Company. Under the settlement agreement, the Company will pay a total of $493,070 (CDN$495,000) over 45 months at a rate of CDN$11,000 per month.

     
  e)

On August 2, 2011, the Company entered into extension of an existing operating lease agreement which commenced on August 1, 2011 and expires on February 28, 2013. The monthly lease payment under the new extension agreement is $6,700.

 

  Total payable over the term of the agreements for the years ended April 30 are as follows:

            Office Leases                    
      Office Leases –     –Unrelated     Sub Lease     Total Office     Settlement  
      Related Party     Party     Income     Leases     Agreement  
  2013 $   63,074   $   456,014   $   (14,953 ) $   504,135   $   49,307  
  2014   84,099     496,005     -     580,104     -  
  2015   -     206,669     -     206,669     -  
    $   147,173   $   1,158,688   $   (14,953 ) $   1,290,908   $   49,307