RELATED PARTY TRANSACTIONS	12 Months Ended
Dec. 31, 2022
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 19. RELATED PARTY TRANSACTIONS On June 3, 2020, the Company entered into a consulting agreement with Adam Hershey, a board member and investor, pursuant to which he would act as a strategic consultant for the Company, including aiding with the sourcing and evaluation of merger and acquisition deals, strategic capital and strategic partnerships or joint ventures. We paid Mr. Hershey $125,000 and $99,996 during the years ended December 31, 2022 and 2021, respectively. We currently have a lease agreement with Dalton Adventures, LLC in which we rent a greenhouse cultivation facility in Boulder, Colorado. The owner of Dalton Adventures, LLC is a principal shareholder and board member of the Company. We incurred approximately $362,000 and $458,000 of rent expense related to this lease for the years ended December 31, 2022 and 2021, respectively. See Note 10 for further discussion of the Company’s obligations associated with related-party leases. We currently have a lease agreement with JLA Enterprises, LLC in which we rent a retail dispensary in Longmont, Colorado. A board member and an executive level employee of the Company are owners of JLA Enterprises, LLC. We also have a lease agreement with ALJ 1090, LLC in which we rent a building that has a retail dispensary and cultivation facility in Berthoud, Colorado. The same board member is an owner of ALJ 1090, LLC. These leases were assumed as part of the Green Tree Acquisition on December 12, 2022, and as such, the expense related to these leases was not material for the year ended December 31, 2022. See Note 10 for further discussion of the Company’s obligations associated with related-party leases. We previously had a lease agreement with Bellewood Holdings, LLC in which we leased the retail space for the Trees Englewood dispensary in Englewood, Colorado. The owner of Bellewood Holdings, LLC is a principal shareholder and board member of the Company. This lease was assigned to a new landlord (unaffiliated with the Company or such principal shareholder and board member) when the building was sold in June 2022. We incurred approximately $66,000 and $47,000 of related-party lease expense for this lease for the years ended December 31, 2022 and December 31, 2021, respectively. See Note 10 for further discussion of the Company’s obligations associated with related-party leases. As of December 31, 2022, four of our current board members hold senior convertible promissory notes from the Company for an aggregate amount of $320,000. These notes are included in the 12% Notes discussed in Note 13. Accrued interest earned and owed to the board members was $11,738 as of December 31, 2022. One of the sellers in the Trees Transaction is a principal shareholder and board member of the Company and another seller is an executive level employee of the Company. As of December 31, 2022, the Company has outstanding debt related to the Trees Transaction payable to these individuals. See Note 13 for disclosure of the Trees Transaction Notes. One former owner of the Green Tree Entities is a current board member and another former owner is currently an executive level employee of the Company. As of December 31, 2022, the Company has outstanding debt related to the Green Tree Acquisition that is payable to these individuals. See Note 13 for disclosure of the Green Tree Acquisition Notes. In addition, the Company made one-item bonus payments of approximately $383,000 to each former owner as part of employment agreements to remain with the Company. These payments are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2022

NOTE 19. RELATED PARTY TRANSACTIONS

On June 3, 2020, the Company entered into a consulting agreement with Adam Hershey, a board member and investor, pursuant to which he would act as a strategic consultant for the Company, including aiding with the sourcing and evaluation of merger and acquisition deals, strategic capital and strategic partnerships or joint ventures. We paid Mr. Hershey $125,000 and $99,996 during the years ended December 31, 2022 and 2021, respectively.

We currently have a lease agreement with Dalton Adventures, LLC in which we rent a greenhouse cultivation facility in Boulder, Colorado. The owner of Dalton Adventures, LLC is a principal shareholder and board member of the Company. We incurred approximately $362,000 and $458,000 of rent expense related to this lease for the years ended December 31, 2022 and 2021, respectively. See Note 10 for further discussion of the Company’s obligations associated with related-party leases.

We currently have a lease agreement with JLA Enterprises, LLC in which we rent a retail dispensary in Longmont, Colorado. A board member and an executive level employee of the Company are owners of JLA Enterprises, LLC. We also have a lease agreement with ALJ 1090, LLC in which we rent a building that has a retail dispensary and cultivation facility in Berthoud, Colorado. The same board member is an owner of ALJ 1090, LLC. These leases were assumed as part of the Green Tree Acquisition on December 12, 2022, and as such, the expense related to these leases was not

material for the year ended December 31, 2022. See Note 10 for further discussion of the Company’s obligations associated with related-party leases.

We previously had a lease agreement with Bellewood Holdings, LLC in which we leased the retail space for the Trees Englewood dispensary in Englewood, Colorado. The owner of Bellewood Holdings, LLC is a principal shareholder and board member of the Company. This lease was assigned to a new landlord (unaffiliated with the Company or such principal shareholder and board member) when the building was sold in June 2022. We incurred approximately $66,000 and $47,000 of related-party lease expense for this lease for the years ended December 31, 2022 and December 31, 2021, respectively. See Note 10 for further discussion of the Company’s obligations associated with related-party leases.

As of December 31, 2022, four of our current board members hold senior convertible promissory notes from the Company for an aggregate amount of $320,000. These notes are included in the 12% Notes discussed in Note 13. Accrued interest earned and owed to the board members was $11,738 as of December 31, 2022.

One of the sellers in the Trees Transaction is a principal shareholder and board member of the Company and another seller is an executive level employee of the Company. As of December 31, 2022, the Company has outstanding debt related to the Trees Transaction payable to these individuals. See Note 13 for disclosure of the Trees Transaction Notes.

One former owner of the Green Tree Entities is a current board member and another former owner is currently an executive level employee of the Company. As of December 31, 2022, the Company has outstanding debt related to the Green Tree Acquisition that is payable to these individuals. See Note 13 for disclosure of the Green Tree Acquisition Notes. In addition, the Company made one-item bonus payments of approximately $383,000 to each former owner as part of employment agreements to remain with the Company. These payments are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations.