LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

 10. 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 2024 and 2043. The Company reassesses the likelihood of exercising a renewal option period if there is a significant event or change in circumstances within its control. 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.

	Three Months Ended March 31,
	2024		2023
Finance lease cost:
Amortization of lease assets	$	1,184	$	1,590
Interest on lease liabilities	2,668		2,349
Total finance lease cost	3,852		3,939
Operating lease cost	1,326		733
Variable lease cost	36		66
Total lease cost	$	5,214	$	4,738

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

	March 31, 2024				December 31, 2023
	(unaudited)
	Finance Leases		Operating Leases		Finance Leases		Operating Leases
Weighted average discount rate	16.08	%	15.15	%	16.09	%	15.09	%
Weighted average remaining lease term (in years)	16.4		8.6		16.6		8.7

The maturities of the contractual undiscounted lease liabilities as of March 31, 2024 are as follows:

	Finance Leases		Operating Leases
Remainder of year	$	7,319	$	3,734
2025	10,820		5,772
2026	10,494		5,536
2027	10,002		5,243
2028	10,166		4,842
Thereafter	147,970		19,670
Total lease payments	196,771		44,797
Less: Imputed interest	(135,367)		(20,658)
Total present value of minimum lease payments	$	61,404	$	24,139
Lease liabilities - current portion	$	9,121	$	4,707
Lease liabilities - non-current	$	52,283	$	19,432

LEASES

 10. 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 2024 and 2043. The Company reassesses the likelihood of exercising a renewal option period if there is a significant event or change in circumstances within its control. 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.

	Three Months Ended March 31,
	2024		2023
Finance lease cost:
Amortization of lease assets	$	1,184	$	1,590
Interest on lease liabilities	2,668		2,349
Total finance lease cost	3,852		3,939
Operating lease cost	1,326		733
Variable lease cost	36		66
Total lease cost	$	5,214	$	4,738

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

	March 31, 2024				December 31, 2023
	(unaudited)
	Finance Leases		Operating Leases		Finance Leases		Operating Leases
Weighted average discount rate	16.08	%	15.15	%	16.09	%	15.09	%
Weighted average remaining lease term (in years)	16.4		8.6		16.6		8.7

The maturities of the contractual undiscounted lease liabilities as of March 31, 2024 are as follows:

	Finance Leases		Operating Leases
Remainder of year	$	7,319	$	3,734
2025	10,820		5,772
2026	10,494		5,536
2027	10,002		5,243
2028	10,166		4,842
Thereafter	147,970		19,670
Total lease payments	196,771		44,797
Less: Imputed interest	(135,367)		(20,658)
Total present value of minimum lease payments	$	61,404	$	24,139
Lease liabilities - current portion	$	9,121	$	4,707
Lease liabilities - non-current	$	52,283	$	19,432