8. Leases Components of the Company’s lease expenses for the three and six months periods ended June 30, 2026 and 2025 are listed below: | | | | | | | | | | | | | | | Six Months Ended
June 30, | | Three Months Ended
June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Finance lease cost | | | | | | | | | | | | | Depreciation of ROU assets | | $ | 2.1 | | $ | 0.2 | | $ | 0.8 | | $ | 0.1 | Interest on lease liabilities | | | 6.1 | | | 7.2 | | | 2.6 | | | 3.6 | Operating lease costs | | | 10.9 | | | 1.8 | | | 8.4 | | | 1.3 | Total lease costs | | $ | 19.1 | | $ | 9.2 | | $ | 11.8 | | $ | 5.0 |
Future minimum lease payments (principal and interest) on the leases are as follows: | | | | | | | | | | | | Operating Leases | | Finance Leases | | | | | | June 30, 2026 | | June 30, 2026 | | Total | 2026 | | $ | 15.0 | | $ | 1.0 | | $ | 16.0 | 2027 | | | 28.0 | | | 2.0 | | | 30.0 | 2028 | | | 27.0 | | | 2.1 | | | 29.1 | 2029 | | | 23.4 | | | 2.1 | | | 25.6 | 2030 | | | 21.8 | | | 2.2 | | | 24.0 | Thereafter | | | 153.4 | | | 24.6 | | | 178.0 | Total minimum lease payments | | $ | 268.7 | | $ | 34.0 | | $ | 302.7 | Less discount to net present value | | | (114.1) | | | (25.2) | | | (139.3) | Present value of lease liability | | $ | 154.6 | | $ | 8.8 | | $ | 163.4 |
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 and six months ended June 30, 2026 and 2025 is detailed below: | | | | | | | | | | | | | | | Six Months Ended | | Three Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | Operating cash flows from principal payments of operating leases | | $ | 4.4 | | $ | 0.8 | | $ | 3.1 | | $ | 0.4 | Operating cash flows from amortization of operating leases | | | 5.2 | | | 0.9 | | | 4.1 | | | 0.7 | Financing cash flows from finance leases | | | 0.1 | | | — | | $ | — | | | — | Non-cash additions to operating ROU assets | | | 0.3 | | | 0.3 | | | — | | | 0.3 |
Other information about the Company’s lease amounts as of June 30, 2026 and 2025 is recognized in the financial statements and outlined below: | | | | | | | | | June 30, | | | | | 2026 | | 2025 | | | Weighted-average remaining lease term (years) – operating leases | | 10.53 | | 7.33 | | | Weighted-average remaining lease term (years) – finance leases | | 13.84 | | 15.59 | | | Weighted-average discount rate – operating leases | | 10.43 | % | 10.93 | % | | Weighted-average discount rate – finance leases | | 24.29 | % | 16.19 | % | |
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