Annual report pursuant to Section 13 and 15(d)

LEASES

v3.23.1
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