LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

LEASES

New Lease Agreement

On February 14, 2024, the Company entered into a guaranty of a lease agreement for a fourth dispensary location in Illinois.

The Company as a Lessor:

Lease income for operating and direct financing leases for the periods presented are as follows:

	Three Months Ended March 31,
	2024		2023
Real estate income:
Operating leases	$	919	$	2,318
Direct financing leases	990		622
Total real estate income	$	1,909	$	2,940

The Company leases buildings in Olympia, Washington and Elk Grove, Illinois that are subleased or partly subleased to a third party. The subleases are classified as operating leases under ASC 842. The underlying assets are presented in the condensed consolidated balances sheets as follows:

	March 31, 2024		December 31, 2023
Right-of-use assets	$	25,037	$	25,249
Current portion of lease liability	$	287	$	289
Long-term portion of lease liability	$	22,439	$	22,380

The Company also leases a building in Elma, Washington that is subleased to a third party. This sublease is classified as a finance lease. A reconciliation of the lease receivables is as follows:

	March 31, 2024		December 31, 2023
Balance, beginning of period	$	7,953	$	9,421
Interest	516		2,342
Lease payments transferred to accounts receivable	(990)		(3,810)
Balance, end of period	7,479		7,953
Less current portion	(4,035)		(3,990)
Long-term lease receivables	$	3,444	$	3,963

LEASES

LEASES

New Lease Agreement

On February 14, 2024, the Company entered into a guaranty of a lease agreement for a fourth dispensary location in Illinois.

The Company as a Lessor:

Lease income for operating and direct financing leases for the periods presented are as follows:

	Three Months Ended March 31,
	2024		2023
Real estate income:
Operating leases	$	919	$	2,318
Direct financing leases	990		622
Total real estate income	$	1,909	$	2,940

The Company leases buildings in Olympia, Washington and Elk Grove, Illinois that are subleased or partly subleased to a third party. The subleases are classified as operating leases under ASC 842. The underlying assets are presented in the condensed consolidated balances sheets as follows:

	March 31, 2024		December 31, 2023
Right-of-use assets	$	25,037	$	25,249
Current portion of lease liability	$	287	$	289
Long-term portion of lease liability	$	22,439	$	22,380

The Company also leases a building in Elma, Washington that is subleased to a third party. This sublease is classified as a finance lease. A reconciliation of the lease receivables is as follows:

	March 31, 2024		December 31, 2023
Balance, beginning of period	$	7,953	$	9,421
Interest	516		2,342
Lease payments transferred to accounts receivable	(990)		(3,810)
Balance, end of period	7,479		7,953
Less current portion	(4,035)		(3,990)
Long-term lease receivables	$	3,444	$	3,963