LEASES

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

 13. LEASES

The Company leases certain business facilities for corporate, retail and cultivation operations from third parties under lease agreements that specify minimum rentals. In addition, the Company leases certain equipment for use in cultivation and extraction activities. The Company determines whether a contract is or contains a lease at the inception of the contract. The expiry dates of the leases, including reasonably certain estimated renewal periods, are between 2023 and 2052. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides the components of lease cost recognized in the consolidated statements of operations and comprehensive income (loss) for the periods presented.

	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	3,402	$	2,585	$	1,555
Finance lease cost:
Amortization of lease assets	5,422		3,155		706
Interest on lease liabilities	11,154		9,158		2,447
Total finance lease cost	$	16,576	$	12,313	$	3,153
Variable lease cost	$	390	$	355	$	34
Total lease cost	$	20,368	$	15,253	$	4,742

All extension options that are reasonably certain to be exercised have been included in the measurement of lease obligations. The Company reassesses the likelihood of extension option exercise if there is a significant event or change in circumstances within its control.

Other information related to operating and finance leases as of the balance sheet dates presented are as follows:

	As of December 31, 2022						As of December 31, 2021
	Finance Leases			Operating Leases			Finance Leases			Operating Leases
Weighted average discount rate	11.23		%	11.51		%	11.75		%	11.50		%
Weighted average remaining lease term (in years)	22.7			14.1			22.6			14.6
Cash paid for amounts included in the measurement of lease liabilities	$	11,629		$	3,133		$	7,805		$	2,080

The maturities of the contractual undiscounted lease liabilities as of December 31, 2022 are as follows:

	Finance Leases		Operating Leases
2023	$	12,092	$	2,876
2024	13,274		2,938
2025	13,202		2,759
2026	13,196		2,526
2027	12,876		2,499
Thereafter	278,746		26,582
Total undiscounted lease liabilities	$	343,386	$	40,180
Interest on lease liabilities	(229,650)		(21,981)
Total present value of minimum lease payments	$	113,736	$	18,199
Lease liabilities - current portion	$	11,361	$	2,652
Lease liabilities - non-current	$	102,375	$	15,547

LEASES

 13. LEASES

The Company leases certain business facilities for corporate, retail and cultivation operations from third parties under lease agreements that specify minimum rentals. In addition, the Company leases certain equipment for use in cultivation and extraction activities. The Company determines whether a contract is or contains a lease at the inception of the contract. The expiry dates of the leases, including reasonably certain estimated renewal periods, are between 2023 and 2052. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides the components of lease cost recognized in the consolidated statements of operations and comprehensive income (loss) for the periods presented.

	Year Ended December 31,
	2022		2021		2020
Operating lease cost	$	3,402	$	2,585	$	1,555
Finance lease cost:
Amortization of lease assets	5,422		3,155		706
Interest on lease liabilities	11,154		9,158		2,447
Total finance lease cost	$	16,576	$	12,313	$	3,153
Variable lease cost	$	390	$	355	$	34
Total lease cost	$	20,368	$	15,253	$	4,742

All extension options that are reasonably certain to be exercised have been included in the measurement of lease obligations. The Company reassesses the likelihood of extension option exercise if there is a significant event or change in circumstances within its control.

Other information related to operating and finance leases as of the balance sheet dates presented are as follows:

	As of December 31, 2022						As of December 31, 2021
	Finance Leases			Operating Leases			Finance Leases			Operating Leases
Weighted average discount rate	11.23		%	11.51		%	11.75		%	11.50		%
Weighted average remaining lease term (in years)	22.7			14.1			22.6			14.6
Cash paid for amounts included in the measurement of lease liabilities	$	11,629		$	3,133		$	7,805		$	2,080

The maturities of the contractual undiscounted lease liabilities as of December 31, 2022 are as follows:

	Finance Leases		Operating Leases
2023	$	12,092	$	2,876
2024	13,274		2,938
2025	13,202		2,759
2026	13,196		2,526
2027	12,876		2,499
Thereafter	278,746		26,582
Total undiscounted lease liabilities	$	343,386	$	40,180
Interest on lease liabilities	(229,650)		(21,981)
Total present value of minimum lease payments	$	113,736	$	18,199
Lease liabilities - current portion	$	11,361	$	2,652
Lease liabilities - non-current	$	102,375	$	15,547