The Company’s lease agreements are for cultivation, manufacturing, retail, and office premises and for vehicles. The property lease terms range between 5 years and 24 years depending on the facility and are subject to an average of 2 renewal periods of equal length as the original lease. Certain leases include escalation clauses or payment of executory costs such as property taxes, utilities, or insurance and maintenance. Rent expense for leases with escalation clauses is accounted for on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides the components of lease costs recognized in the unaudited interim condensed consolidated statement of operations and comprehensive loss for the three month periods ended June 30, 2026 and 2025:

Other information related to operating and finance leases as of and for the six months ended June 30, 2026 and 2025 is as follows:

The maturities of the contractual undiscounted lease liabilities as of June 30, 2026 and  December 31, 2025 are:

Principally all leases relate to real estate.

For the three and six months ended June 30, 2026, the Company incurred $2,063,671 and $4,138,331 of operating lease costs (2025 - $2,384,247 and $4,691,318), of which $955,414 and $1,917,631 (2025 - $1,016,522 and $2,033,044) was allocated to cost of goods sold and inventory.

See Note 14 for additional supplemental cash flow information related to leases.