Quarterly report pursuant to Section 13 or 15(d)

LEASE OBLIGATIONS

v3.22.2.2
LEASE OBLIGATIONS
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
LEASE OBLIGATIONS
 10. 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 2022 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 June 30, Six Months Ended June 30,
2022 2021 2022 2021
Operating lease cost $ 914  $ 499  $ 1,800  $ 956 
Finance lease cost:
   Amortization of lease assets 1,261  710  2,403  1,076 
   Interest on lease liabilities 3,013  2,297  5,914  3,687 
 Total finance lease cost $ 4,274  $ 3,007  $ 8,317  $ 4,763 
Variable lease cost $ 89  $ 83  $ 182  $ 158 
Total lease cost $ 5,277  $ 3,589  $ 10,299  $ 5,877 
Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
June 30, 2022 December 31, 2021
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.71  % 11.40  % 11.75  % 11.50  %
Weighted average remaining lease term (in years) 22.1 13.8 22.6 14.6
The maturities of the contractual undiscounted lease liabilities as of June 30, 2022 are as follows:
Finance Leases Operating Leases
Remainder of the year $ 8,718  $ 1,505 
2023 11,470  3,377 
2024 11,634  3,118 
2025 12,199  2,899 
2026 11,968  2,663 
Thereafter 265,639  30,183 
$ 321,628  $ 43,745 
Interest on lease liabilities (215,466) (23,975)
Total present value of minimum lease payments $ 106,162  $ 19,770 
Lease liabilities - current portion $ 13,117  $ 2,829 
Lease liabilities - non-current $ 93,045  $ 16,941 
LEASE OBLIGATIONS
 10. 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 2022 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 June 30, Six Months Ended June 30,
2022 2021 2022 2021
Operating lease cost $ 914  $ 499  $ 1,800  $ 956 
Finance lease cost:
   Amortization of lease assets 1,261  710  2,403  1,076 
   Interest on lease liabilities 3,013  2,297  5,914  3,687 
 Total finance lease cost $ 4,274  $ 3,007  $ 8,317  $ 4,763 
Variable lease cost $ 89  $ 83  $ 182  $ 158 
Total lease cost $ 5,277  $ 3,589  $ 10,299  $ 5,877 
Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
June 30, 2022 December 31, 2021
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.71  % 11.40  % 11.75  % 11.50  %
Weighted average remaining lease term (in years) 22.1 13.8 22.6 14.6
The maturities of the contractual undiscounted lease liabilities as of June 30, 2022 are as follows:
Finance Leases Operating Leases
Remainder of the year $ 8,718  $ 1,505 
2023 11,470  3,377 
2024 11,634  3,118 
2025 12,199  2,899 
2026 11,968  2,663 
Thereafter 265,639  30,183 
$ 321,628  $ 43,745 
Interest on lease liabilities (215,466) (23,975)
Total present value of minimum lease payments $ 106,162  $ 19,770 
Lease liabilities - current portion $ 13,117  $ 2,829 
Lease liabilities - non-current $ 93,045  $ 16,941