Quarterly report pursuant to Section 13 or 15(d)

LEASE OBLIGATIONS

v3.22.2.2
LEASE OBLIGATIONS
 9 Months Ended
Sep. 30, 2022
Leases [Abstract]  
LEASE OBLIGATIONS
 11. LEASE OBLIGATIONS
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.
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Operating lease cost $ 898  $ 783  $ 2,698  $ 1,739 
Finance lease cost:
   Amortization of lease assets 1,532  999  3,935  2,075 
   Interest on lease liabilities 2,754  2,516  8,668  6,203 
 Total finance lease cost $ 4,286  $ 3,515  $ 12,603  $ 8,278 
Variable lease cost $ 99  $ 89  $ 281  $ 247 
Total lease cost $ 5,283  $ 4,387  $ 15,582  $ 10,264 

Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
September 30, 2022 December 31, 2021
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.23  % 11.70  % 11.75  % 11.50  %
Weighted average remaining lease term (in years) 22.7 14.1 22.6 14.6
The maturities of the contractual undiscounted lease liabilities as of September 30, 2022 are as follows:
Finance Leases Operating Leases
Remainder of the year $ 2,564  $ 597 
2023 13,454  3,194 
2024 12,037  2,938 
2025 12,377  2,741 
2026 12,466  2,517 
Thereafter 289,487  29,080 
$ 342,385  $ 41,067 
Interest on lease liabilities (231,561) (22,769)
Total present value of minimum lease payments $ 110,824  $ 18,298 
Lease liabilities - current portion $ 12,735  $ 2,661 
Lease liabilities - non-current $ 98,089  $ 15,637 
LEASE OBLIGATIONS
 11. LEASE OBLIGATIONS
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.
Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
Operating lease cost $ 898  $ 783  $ 2,698  $ 1,739 
Finance lease cost:
   Amortization of lease assets 1,532  999  3,935  2,075 
   Interest on lease liabilities 2,754  2,516  8,668  6,203 
 Total finance lease cost $ 4,286  $ 3,515  $ 12,603  $ 8,278 
Variable lease cost $ 99  $ 89  $ 281  $ 247 
Total lease cost $ 5,283  $ 4,387  $ 15,582  $ 10,264 

Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
September 30, 2022 December 31, 2021
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.23  % 11.70  % 11.75  % 11.50  %
Weighted average remaining lease term (in years) 22.7 14.1 22.6 14.6
The maturities of the contractual undiscounted lease liabilities as of September 30, 2022 are as follows:
Finance Leases Operating Leases
Remainder of the year $ 2,564  $ 597 
2023 13,454  3,194 
2024 12,037  2,938 
2025 12,377  2,741 
2026 12,466  2,517 
Thereafter 289,487  29,080 
$ 342,385  $ 41,067 
Interest on lease liabilities (231,561) (22,769)
Total present value of minimum lease payments $ 110,824  $ 18,298 
Lease liabilities - current portion $ 12,735  $ 2,661 
Lease liabilities - non-current $ 98,089  $ 15,637