8. Leases Components of the Company’s lease expenses as of March 31, 2026 and 2025 are listed below: | | | | | | | | | March 31, | | March 31, | | | 2026 | | 2025 | Finance lease cost | | | | | | | Depreciation of ROU assets | | $ | 1.3 | | $ | 0.1 | Interest on lease liabilities | | | 3.6 | | | 3.6 | Operating lease costs | | | 2.5 | | | 0.5 | Total lease costs | | $ | 7.4 | | $ | 4.2 |
Future minimum lease payments (principal and interest) on the leases are as follows: | | | | | | | | | | | | Operating Leases | | Finance Leases | | | | | | March 31, 2026 | | March 31, 2026 | | Total | 2026 | | $ | 11.3 | | $ | 10.7 | | $ | 22.0 | 2027 | | | 14.7 | | | 14.6 | | | 29.3 | 2028 | | | 14.5 | | | 15.0 | | | 29.5 | 2029 | | | 13.5 | | | 15.5 | | | 29.0 | 2030 | | | 13.4 | | | 16.0 | | | 29.4 | Thereafter | | | 81.5 | | | 187.1 | | | 268.6 | Total minimum lease payments | | $ | 148.9 | | $ | 258.9 | | $ | 407.8 | Less discount to net present value | | | (64.2) | | | (163.1) | | | (227.3) | Present value of lease liability | | $ | 84.7 | | $ | 95.8 | | $ | 180.5 |
The Company has entered into various lease agreements for the use of buildings used in the production and retail sales of cannabis products. Supplemental cash flow information related to the Company’s leases for the three months ended March 31, 2026 and 2025 is detailed below: | | | | | | | | | Three Months Ended | | | March 31, | | | 2026 | | 2025 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | Lease principal payments - finance | | $ | 0.1 | | $ | — | Lease principal payments - operating | | | 1.3 | | | 0.4 | Non-cash additions to ROU assets | | | 0.3 | | | — | Amortization of operating leases | | | 1.1 | | | 0.2 |
Other information about the Company’s lease amounts as of March 31, 2026 and 2025 is recognized in the financial statements and outlined below: | | | | | | | | | March 31, | | | | | 2026 | | 2025 | | | Weighted-average remaining lease term (years) – operating leases | | 10.70 | | 7.19 | | | Weighted-average remaining lease term (years) – finance leases | | 15.03 | | 15.84 | | | Weighted-average discount rate – operating leases | | 10.62 | % | 12.01 | % | | Weighted-average discount rate – finance leases | | 16.16 | % | 16.19 | % | |
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