The majority of the Company’s leases are operating leases used primarily for corporate offices, retail, cultivation and manufacturing. The operating lease periods generally range from 1 to 28 years. The Company had three finance leases at June 30, 2022 and one finance lease at December 31, 2021.

Amounts recognized in the consolidated balance sheet are as follows:


	June 30, 2022		December 31, 2021
Operating leases:
Operating lease right-of-use assets	$	30,570	$	29,561

Operating lease liability classified as current		1,394		1,171
Operating lease liability classified as non-current		31,680		30,573
Total operating lease liabilities	$	33,074	$	31,744

Finance leases:
Property and equipment, net	$	4,724	$	168

Lease obligations under finance leases classified as current		384		22
Lease obligations under finance leases classified as non-current		4,794		181
Total finance lease obligations	$	5,178	$	203

The Company recognized operating lease expense of $1,173 and $2,355 for the three and six months ended June 30, 2022, respectively and $1,231 and $2,109 for the three and six months ended June 30, 2021, respectively.

On January 27, 2022, the Company made a payment of $3,300 related to the Lease Termination at its Hagerstown location which enables the Company to terminate its building lease at a later date. The lease termination fee was expensed during the year ended December 31, 2021.

Other information related to operating leases at June 30, 2022 and December 31, 2021 consist of the following:


	June 30, 2022			December 31, 2021
Weighted-average remaining lease term (years)
Operating leases		12.9			14.2
Finance leases		9.9			5.5

Weighted-average discount rate
Operating leases		10.69	%		10.72	%

Supplemental cash flow information related to leases are as follows:


	June 30, 2022		December 31, 2021
Cash paid for amounts included in measurement of operating lease liabilities	$	2,434	$	3,987
Right-of-use assets obtained in exchange for lease obligations	$	6,641	$	9,773
Cash paid for amounts included in measurement of finance lease liabilities	$	67	$	40

Undiscounted lease obligations are as follows:


	Operating			Finance			Total
2022	$	2,448		$	264		$	2,712
2023		4,975			824			5,799
2024		4,966			757			5,723
2025		4,950			775			5,725
2026		4,672			794			5,466
Thereafter		43,887			4,608			48,495
Total lease payments		65,898			8,022			73,920
Less: interest		(32,824	)		(2,844	)		(35,668	)
Total lease liabilities	$	33,074		$	5,178		$	38,252

Under the terms of these operating sublease agreements, future rental income from such third-party leases is expected to be as follows:



2022	$	243
2023		435
2024		434
2025		448
2026		263
Thereafter		-
Total rental payments	$	1,823

A sale-leaseback transaction occurs when an entity sells an asset it owns and then immediately leases the asset back from the buyer. The seller then becomes the lessee and the buyer becomes the lessor. Under ASC 842, both parties must assess whether the buyer-lessor has obtained control of the asset and a sale has occurred. The Company's subsidiary Gage entered into leaseback transactions on five properties of owned real estate. The Company has determined that these transactions do not qualify as a sale because control was not transferred to the buyer-lessor. Therefore, the Company has classified the lease portion of the transaction as a finance lease and continues to depreciate the asset. The Gage Acquisition (refer to Note 4) included financing obligations. The balance at June 30, 2022 was $12,352. Of this amount, $746 is included in other current liabilities and $11,606 is included in financing obligations in the consolidated balance sheets.