LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

The Company leases land, buildings, equipment and other capital assets which it plans to use for corporate purposes in addition to the production and sale of cannabis products. Leases with an initial term of 12 months or less are not recorded on the Unaudited Condensed Consolidated Statements of Financial Position and are expensed in the Unaudited Condensed Consolidated Statements of Operations on the straight-line basis over the lease term. The Company does not have any material variable lease payments and accounts for non-lease components separately from leases.

Balance Sheet Information	Classification	March 31, 2023		December 31, 2022
Right-of-use assets
Operating	Operating lease right-of-use assets	$	20,842	$	22,443
Finance	Capital assets, net	4,782		4,269
Total right-of-use assets		$	25,624	$	26,712
Lease liabilities
Current
Operating	Operating lease liability, current	$	2,529	$	2,443
Financing	Debt, current	105		1
Non-current
Operating	Operating lease liability, non-current	20,293		21,692
Financing	Debt, non-current	5,877		5,305
Total lease liabilities		$	28,804	$	29,441

		Three Months Ended March 31,
Statement of Operations Information	Classification	2023		2022
Short-term lease expense	General and administrative	$	151	$	48
Operating lease expense	General and administrative	1,337		1,248
Finance lease expense:
Amortization of right of use asset	Depreciation and amortization	93		63
Interest expense on lease liabilities	Interest expense	209		212
Net operating and finance lease cost		$	1,639	$	1,523

		Three Months Ended March 31,
Statement of Cash Flows Information	Classification	2023		2022
Cash paid for operating leases	Net cash used in operating activities	$	1,774	$	1,257
Cash paid for finance leases - interest	Net cash used in operating activities	$	269	$	201

The following represents the Company’s future minimum payments required under existing leases with initial terms of one year or more as of March 31, 2023:

Maturity of lease liabilities	Operating Leases		Finance Leases
2023	$	3,359	$	677
2024	4,522		923
2025	4,485		946
2026	4,551		969
2027	4,037		992
Thereafter	13,267		11,705
Total lease payments	$	34,221	$	16,212
Less: interest	11,399		10,230
Present value of lease liabilities	$	22,822	$	5,982
Weighted average remaining lease term (years)	8		12
Weighted average discount rate	10%		12%

As of March 31, 2023, there have been no leases entered into that have not yet commenced.

LEASES

LEASES

The Company leases land, buildings, equipment and other capital assets which it plans to use for corporate purposes in addition to the production and sale of cannabis products. Leases with an initial term of 12 months or less are not recorded on the Unaudited Condensed Consolidated Statements of Financial Position and are expensed in the Unaudited Condensed Consolidated Statements of Operations on the straight-line basis over the lease term. The Company does not have any material variable lease payments and accounts for non-lease components separately from leases.

Balance Sheet Information	Classification	March 31, 2023		December 31, 2022
Right-of-use assets
Operating	Operating lease right-of-use assets	$	20,842	$	22,443
Finance	Capital assets, net	4,782		4,269
Total right-of-use assets		$	25,624	$	26,712
Lease liabilities
Current
Operating	Operating lease liability, current	$	2,529	$	2,443
Financing	Debt, current	105		1
Non-current
Operating	Operating lease liability, non-current	20,293		21,692
Financing	Debt, non-current	5,877		5,305
Total lease liabilities		$	28,804	$	29,441

		Three Months Ended March 31,
Statement of Operations Information	Classification	2023		2022
Short-term lease expense	General and administrative	$	151	$	48
Operating lease expense	General and administrative	1,337		1,248
Finance lease expense:
Amortization of right of use asset	Depreciation and amortization	93		63
Interest expense on lease liabilities	Interest expense	209		212
Net operating and finance lease cost		$	1,639	$	1,523

		Three Months Ended March 31,
Statement of Cash Flows Information	Classification	2023		2022
Cash paid for operating leases	Net cash used in operating activities	$	1,774	$	1,257
Cash paid for finance leases - interest	Net cash used in operating activities	$	269	$	201

The following represents the Company’s future minimum payments required under existing leases with initial terms of one year or more as of March 31, 2023:

Maturity of lease liabilities	Operating Leases		Finance Leases
2023	$	3,359	$	677
2024	4,522		923
2025	4,485		946
2026	4,551		969
2027	4,037		992
Thereafter	13,267		11,705
Total lease payments	$	34,221	$	16,212
Less: interest	11,399		10,230
Present value of lease liabilities	$	22,822	$	5,982
Weighted average remaining lease term (years)	8		12
Weighted average discount rate	10%		12%

As of March 31, 2023, there have been no leases entered into that have not yet commenced.