Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES
 8. 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.
Three Months Ended March 31,
2023 2022
Finance lease cost:
   Amortization of lease assets $ 1,590  $ 1,143 
   Interest on lease liabilities 2,349  2,901 
Total finance lease cost $ 3,939  $ 4,044 
Operating lease cost 733  886 
Variable lease cost 66  93 
Total lease cost $ 4,738  $ 5,023 
Operating lease assets were $15,225 and $16,244 as of March 31, 2023 and December 31, 2022, respectively, which are included in other non-current assets in the consolidated balance sheets. Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
March 31, 2023 December 31, 2022
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.50  % 11.38  % 11.23  % 11.51  %
Weighted average remaining lease term (in years) 20.9 13.1 22.7 14.1
The maturities of the contractual undiscounted lease liabilities as of March 31, 2023 are as follows:
Finance Leases Operating Leases
Remainder of year $ 9,575  $ 1,943 
2024 13,285  2,913 
2025 13,213  2,734 
2026 13,207  2,499 
2027 12,851  2,371 
Thereafter 272,442  26,583 
$ 334,573  $ 39,043 
Less: Imputed interest (222,072) (20,567)
Total present value of minimum lease payments $ 112,501  $ 18,476 
Lease liabilities - current portion $ 10,293  $ 2,887 
Lease liabilities - non-current $ 102,208  $ 15,589 
LEASES
 8. 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.
Three Months Ended March 31,
2023 2022
Finance lease cost:
   Amortization of lease assets $ 1,590  $ 1,143 
   Interest on lease liabilities 2,349  2,901 
Total finance lease cost $ 3,939  $ 4,044 
Operating lease cost 733  886 
Variable lease cost 66  93 
Total lease cost $ 4,738  $ 5,023 
Operating lease assets were $15,225 and $16,244 as of March 31, 2023 and December 31, 2022, respectively, which are included in other non-current assets in the consolidated balance sheets. Other information related to operating and finance leases as of the balance sheet dates presented are as follows:
March 31, 2023 December 31, 2022
(unaudited)
Finance Leases Operating Leases Finance Leases Operating Leases
Weighted average discount rate 11.50  % 11.38  % 11.23  % 11.51  %
Weighted average remaining lease term (in years) 20.9 13.1 22.7 14.1
The maturities of the contractual undiscounted lease liabilities as of March 31, 2023 are as follows:
Finance Leases Operating Leases
Remainder of year $ 9,575  $ 1,943 
2024 13,285  2,913 
2025 13,213  2,734 
2026 13,207  2,499 
2027 12,851  2,371 
Thereafter 272,442  26,583 
$ 334,573  $ 39,043 
Less: Imputed interest (222,072) (20,567)
Total present value of minimum lease payments $ 112,501  $ 18,476 
Lease liabilities - current portion $ 10,293  $ 2,887 
Lease liabilities - non-current $ 102,208  $ 15,589