Leases

12 Months Ended

Dec. 31, 2024

8. LEASES

The Company’s operating leases consist of a parcel of land in Marfa, Texas that two of its greenhouses resides on, a parcel of land in Monahans, 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 spaces in Denver, Colorado for Balanced Health’s headquarters and operations. Rose leases a building for headquarters in Montreal, Quebec.

The components of lease related expenses are as follows:


	Year ended December 31,
	2024		2023
Operating lease expense (a)	$	4,468	$	4,879

(a)

Includes short-term and variable lease costs of $2,066 and $1,986 for the years ended December 31, 2024 and 2023, respectively.

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


	Year ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (fixed payments)	$	3,034	$	2,704
Operating cash flows (liability reduction)	$	2,475	$	1,893

ROU assets obtained in exchange for lease obligations:
Operating leases	$	117	$	5,578

Other information related to operating leases was as follows:


	December 31, 2024
Weighted average remaining lease term:
Operating leases		4.52
Weighted average discount rate:
Operating leases		7.87	%

Maturities of lease liabilities as of December 31, 2024 were as follows:


	Operating leases
2025	$	3,208
2026		3,255
2027		2,643
2028		2,184
2029		1,409
Thereafter		271
Total minimum lease payments		12,970
Less amounts representing interest		(1,900	)
Total lease obligation, net of interest		11,070
Less current portion		(2,497	)
Long-term portion of lease obligations, net of interest	$	8,573