Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

9. Leases

Components of lease expenses are listed below:

	September 30,		September 30,
	2022		2021
Finance lease cost
Amortization of ROU assets	$	824,401	$	692,686
Interest on lease liabilities		7,976,015		2,631,030
Operating lease expense		1,938,797		1,946,009
Total lease expenses	$	10,739,213	$	5,269,725

Future minimum lease payments (principal and interest) on the leases are as follows:

	Operating Leases		Finance Leases
	September 30, 2022		September 30, 2022		Total
2022	$	642,885	$	2,245,507	$	2,888,392
2023		2,518,169		10,492,227		13,010,396
2024		2,243,050		10,597,822		12,840,872
2025		2,030,129		10,683,979		12,714,108
2026		1,609,276		11,001,044		12,610,320
Thereafter		2,656,286		206,379,022		209,035,308
Total minimum lease payments	$	11,699,795	$	251,399,601	$	263,099,396
Less discount to net present value		(3,746,966)		(175,378,380)		(179,125,346)
Less liabilities held for sale		(228,449)		(1,147,735)		(1,376,184)
Present value of lease liability	$	7,724,380	$	74,873,486	$	82,597,866

The Company has entered into various lease agreements for the use of buildings used in production and retail sales of cannabis products.

Supplemental cash flow information related to leases:

	September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Lease principal payments	$	1,437,346	$	1,008,584
Non-cash additions to ROU assets		—		59,665,237
Amortization of operating leases		997,804		934,934

Other information about lease amounts recognized in the financial statements:

	September 30,
	2022		2021
Weighted-average remaining lease term (years) – operating leases	5.05		5.85
Weighted-average remaining lease term (years) – finance leases	18.89		19.85
Weighted-average discount rate – operating leases	15.00	%	15.00	%
Weighted-average discount rate – finance leases	15.25	%	15.33	%