Annual report pursuant to Section 13 and 15(d)

LEASES

v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
Lease Commitments

The Company was the lessee under eight operating leases and twenty-three finance leases at December 31, 2023. These leases contain rent holidays and customary escalations of lease payments for the type of facilities being leased. The Company's operating lease agreements include its corporate headquarters, dispensaries and cannabis production and processing facilities. The Company subleases three of these leased facilities to a cannabis-licensed client. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods which the Company fully expects to exercise. Certain leases require the payment of property taxes, insurance and/or maintenance costs in addition to the rent payments.

The Company leases machinery and office equipment under finance leases that expire in January 2026 through October 2038 with such terms comprising major part of the economic useful life of the leased property.

The components of lease expense for the years ended December 31, 2023 and 2022 were as follows (in thousands):

Year ended December 31,
2023 2022
Operating lease expense $ 1,838  $ 1,160 
Finance lease expense:
  Amortization of right-of-use assets $ 606  $ 169 
  Interest on lease liabilities 244  47 
    Total finance lease expense $ 850  $ 216 

The weighted average remaining lease terms and weighted average discount rates for the Company's operating leases and finance leases at December 31, 2023 and 2022 were as follows:

Year ended December 31,
2023 2022
Weighted average remaining lease term (years):
  Operating leases 9.83 6.30
  Finance leases 3.29 3.70
Weighted average discount rate:
  Operating leases 11.0  % 8.1  %
  Finance leases 11.0  % 8.7  %
Future minimum lease payments as of December 31, 2023 under all non-cancelable leases having an initial or remaining term of more than one year were as follows (in thousands):

Year ending December 31, Operating
leases		 Finance
leases
  2024 $ 1,945  $ 1,210 
  2025 1,987  1,209 
  2026 1,958  926 
  2027 1,813  359 
  2028 1,757  105 
  Thereafter 2,229  — 
Total lease payments 11,689  3,809 
Less: imputed interest (1,289) (459)
Present value of lease liabilities $ 10,400  $ 3,350 
LEASES LEASES
Lease Commitments

The Company was the lessee under eight operating leases and twenty-three finance leases at December 31, 2023. These leases contain rent holidays and customary escalations of lease payments for the type of facilities being leased. The Company's operating lease agreements include its corporate headquarters, dispensaries and cannabis production and processing facilities. The Company subleases three of these leased facilities to a cannabis-licensed client. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods which the Company fully expects to exercise. Certain leases require the payment of property taxes, insurance and/or maintenance costs in addition to the rent payments.

The Company leases machinery and office equipment under finance leases that expire in January 2026 through October 2038 with such terms comprising major part of the economic useful life of the leased property.

The components of lease expense for the years ended December 31, 2023 and 2022 were as follows (in thousands):

Year ended December 31,
2023 2022
Operating lease expense $ 1,838  $ 1,160 
Finance lease expense:
  Amortization of right-of-use assets $ 606  $ 169 
  Interest on lease liabilities 244  47 
    Total finance lease expense $ 850  $ 216 

The weighted average remaining lease terms and weighted average discount rates for the Company's operating leases and finance leases at December 31, 2023 and 2022 were as follows:

Year ended December 31,
2023 2022
Weighted average remaining lease term (years):
  Operating leases 9.83 6.30
  Finance leases 3.29 3.70
Weighted average discount rate:
  Operating leases 11.0  % 8.1  %
  Finance leases 11.0  % 8.7  %
Future minimum lease payments as of December 31, 2023 under all non-cancelable leases having an initial or remaining term of more than one year were as follows (in thousands):

Year ending December 31, Operating
leases		 Finance
leases
  2024 $ 1,945  $ 1,210 
  2025 1,987  1,209 
  2026 1,958  926 
  2027 1,813  359 
  2028 1,757  105 
  Thereafter 2,229  — 
Total lease payments 11,689  3,809 
Less: imputed interest (1,289) (459)
Present value of lease liabilities $ 10,400  $ 3,350