| Leases |
9. Leases Components of lease expenses are listed below: | | | | | | | | | December 31, | | December 31, | | | 2025 | | 2024 | Finance lease cost | | | | | | | Depreciation of ROU assets | | $ | 8,209,329 | | $ | 512,834 | Interest on lease liabilities | | | 14,348,831 | | | 14,222,167 | Operating lease costs | | | 6,510,069 | | | 2,163,275 | Total lease costs | | $ | 29,068,229 | | $ | 16,898,276 |
Future minimum lease payments (principal and interest) on the leases are as follows: | | | | | | | | | | | | Operating Leases | | Finance Leases | | | | | | December 31, 2025 | | December 31, 2025 | | Total | 2026 | | $ | 9,420,944 | | $ | 14,183,661 | | $ | 23,604,605 | 2027 | | | 8,942,081 | | | 14,606,527 | | | 23,548,608 | 2028 | | | 8,686,337 | | | 15,042,128 | | | 23,728,465 | 2029 | | | 8,124,665 | | | 15,490,852 | | | 23,615,517 | 2030 | | | 8,139,188 | | | 15,953,100 | | | 24,092,288 | Thereafter | | | 54,528,635 | | | 187,128,965 | | | 241,657,600 | Total minimum lease payments | | $ | 97,841,850 | | $ | 262,405,233 | | $ | 360,247,083 | Less discount to net present value | | | (43,794,310) | | | (166,587,944) | | | (210,382,254) | Present value of lease liability | | $ | 54,047,540 | | $ | 95,817,289 | | $ | 149,864,829 |
The Company has entered into various lease agreements for the use of buildings used in production and retail and wholesale sales of cannabis products. Supplemental cash flow information related to leases | | | | | | | | | Year Ended | | | December 31, | | | 2025 | | 2024 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Lease principal payments - finance | | $ | — | | $ | 196,442 | Lease principal payments - operating | | | 3,114,791 | | | 781,567 | Non-cash additions to ROU assets | | | 2,226,321 | | | 6,563,610 | Amortization of operating leases | | | 2,440,134 | | | 722,618 |
Other information about lease amounts recognized in the financial statements | | | | | | | | | December 31 | | | | | 2025 | | 2024 | | | Weighted-average remaining lease term (years) – operating leases | | 11.34 | | 7.18 | | | Weighted-average remaining lease term (years) – finance leases | | 15.09 | | 16.09 | | | Weighted-average discount rate – operating leases | | 10.68 | % | 12.09 | % | | Weighted-average discount rate – finance leases | | 16.17 | % | 16.19 | % | |
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