Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

v3.26.1
LEASES
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
LEASES
 11. LEASES
The Company leases certain business facilities for corporate, retail and cultivation and processing operations from third parties under lease agreements that specify minimum rentals. In addition, the Company leases certain equipment for use in cultivation and processing 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 2026 and 2043. 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 for the periods presented.
Year Ended December 31,
2025 2024 2023
Finance lease cost:
   Amortization of lease assets $ 5,244  $ 4,758  $ 5,358 
   Interest on lease liabilities 10,224  10,045  9,784 
 Total finance lease cost 15,468  14,803  15,142 
Operating lease cost 6,226  5,112  4,819 
Variable lease cost 46  86  155 
Total lease cost $ 21,740  $ 20,001  $ 20,116 
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, 2025
As of December 31, 2024
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 16.29  % 15.95  % 16.17  % 15.28  %
Weighted average remaining lease term (in years) 14.6 7.8 15.6 8.0
Cash paid for amounts included in the measurement of lease liabilities
 $ 11,622 $ 6,435 $ 11,054 $ 5,780
The maturities of the contractual undiscounted lease liabilities as of December 31, 2025 are as follows:
Finance Leases Operating Leases
2026 $ 12,087  $ 6,336 
2027 11,521  5,727 
2028 11,562  5,023 
2029 11,033  4,332 
2030 11,012  3,900 
Thereafter 128,345  15,577 
Total undiscounted lease liabilities 185,560  40,895 
Interest on lease liabilities (120,888) (18,000)
Total present value of minimum lease payments $ 64,672  $ 22,895 
Lease liabilities - current portion $ 11,125  $ 6,035 
Lease liabilities - non-current $ 53,547  $ 16,860 
LEASES
 11. LEASES
The Company leases certain business facilities for corporate, retail and cultivation and processing operations from third parties under lease agreements that specify minimum rentals. In addition, the Company leases certain equipment for use in cultivation and processing 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 2026 and 2043. 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 for the periods presented.
Year Ended December 31,
2025 2024 2023
Finance lease cost:
   Amortization of lease assets $ 5,244  $ 4,758  $ 5,358 
   Interest on lease liabilities 10,224  10,045  9,784 
 Total finance lease cost 15,468  14,803  15,142 
Operating lease cost 6,226  5,112  4,819 
Variable lease cost 46  86  155 
Total lease cost $ 21,740  $ 20,001  $ 20,116 
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, 2025
As of December 31, 2024
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 16.29  % 15.95  % 16.17  % 15.28  %
Weighted average remaining lease term (in years) 14.6 7.8 15.6 8.0
Cash paid for amounts included in the measurement of lease liabilities
 $ 11,622 $ 6,435 $ 11,054 $ 5,780
The maturities of the contractual undiscounted lease liabilities as of December 31, 2025 are as follows:
Finance Leases Operating Leases
2026 $ 12,087  $ 6,336 
2027 11,521  5,727 
2028 11,562  5,023 
2029 11,033  4,332 
2030 11,012  3,900 
Thereafter 128,345  15,577 
Total undiscounted lease liabilities 185,560  40,895 
Interest on lease liabilities (120,888) (18,000)
Total present value of minimum lease payments $ 64,672  $ 22,895 
Lease liabilities - current portion $ 11,125  $ 6,035 
Lease liabilities - non-current $ 53,547  $ 16,860