Leases

12 Months Ended

Dec. 31, 2023

8. LEASES

The Company’s operating leases consist of a parcel of land in Marfa, Texas that one of its greenhouses resides on, two distribution centers located in Fort Worth, Texas and Surrey, British Columbia, and production-related equipment at its greenhouses in Texas and British Columbia. The Company also leases an office building located in Lake Mary, Florida for its corporate headquarters, and office and manufacturing space in Denver, Colorado for BHB’s headquarters and operations. Rose owns land and leases a building for headquarters and operations in Montreal, Quebec.

The components of lease related expenses are as follows:


	Year ended December 31,
	2023		2022
Operating lease expense (a)	$	4,879	$	4,434

(a)

Includes short-term and variable lease costs of $1,986 and $999 for the years ended December 31, 2023 and 2022, respectively.

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


	Year ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (fixed payments)	$	2,704	$	2,505
Operating cash flows (liability reduction)	$	1,893	$	1,783

ROU assets obtained in exchange for lease obligations:
Operating leases	$	5,578	$	3,221

Other information related to operating leases was as follows:


	December 31, 2023
Weighted average remaining lease term:
Operating leases		5.40
Weighted average discount rate:
Operating leases		7.75	%

Maturities of lease liabilities as of December 31, 2023 were as follows:


	Operating leases
2024	$	3,001
2025		3,238
2026		3,318
2027		2,734
2028		2,275
Thereafter		1,718
Total minimum lease payments		16,284
Less amounts representing interest		(2,837	)
Total lease obligation, net of interest		13,447
Less current portion		(2,112	)
Long-term portion of lease obligations, net of interest	$	11,335