Leases

12 Months Ended

Dec. 31, 2019

LEASES

The Company leases a parcel of land in Marfa, Texas that one of its greenhouses resides on as well as two distribution centers located in Fort Worth, Texas and Surrey, British Columbia. The Company also leases production related equipment at its greenhouses in Texas and British Columbia. In January the Company commenced leasing of an office building located in Lake Mary, Florida for its corporate headquarters.

The components of lease related expenses are as follows:


	Year Ended December 31, 2019
Operating lease expense (a)	$	2,410

Finance lease expense:
Amortization of right-of-use assets		80
Interest on lease liabilities		7

Total finance lease expense	$	87

(a)

Includes short-term lease costs of $1,287 for the year ended December 31, 2019.

Cash paid for amounts included in the measurement of lease liabilities:


	Year Ended December 31, 2019
Operating cash flows from operating leases	$	1,043
Operating cash flows from finance leases	$	7
Financing cash flows from finance leases	$	83


	December 31, 2019
Weighted average remaining lease term:
Operating leases		4.1 years
Finance leases		1.7 years
Weighted average discount rate:
Operating leases		6.25	%
Finance leases		6.25	%

Maturities of lease liabilities are as follows:


	Operating leases			Finance leases
2020	$	1,073		$	65
2021		1,090			30
2022		869			9
2023		641			—
2024		276			—
Thereafter		113			—

Undiscounted lease cash flow commitments		4,062			104
Reconciling impact from discounting		(497	)		(9	)

Lease liabilities on consolidated balance sheet as of December 31, 2019	$	3,565		$	95

The following table presents the Company’s unadjusted lease commitments as of December 31, 2018 as a required disclosure for companies adopting the lease standard prospectively without revising comparative period information.


	Operating leases		Finance leases
2019	$	1,253	$	78
2020		1,039		62
2021		1,052		30
2022		841		10
2023		618		—
Thereafter		261		—

	$	5,064	$	180