NOTE 12 – LEASES

The Company occupies office and other facilities under lease agreements that expire at various dates. In addition, office, production and transportation equipment are leased under agreements that expire at various dates. The Company does not have any significant finance leases. Total operating lease costs were $0.34 million and $0.37 million for the three months ended September 30, 2025 and 2024, respectively, and $0.62 million and $1.26 million for the nine months ended September 30, 2025 and 2024, respectively. Short-term lease costs were $0.15 million and $0.03 million for the three months ended September 30, 2025 and 2024, respectively, and $0.28 million and $0.1 million for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025 and December 31, 2024, short-term lease liabilities of $0.43 million and $0.17 million, respectively, are included in “Accounts Payable & Accrued Liabilities” on the consolidated balance sheets. The table below presents total operating lease right-of-use assets and lease liabilities as of:

On August 15, 2025, the Company entered in a new lease agreement for its retail dispensary located in Santa Clara County and recognized a right-of-use asset of $1.28 million and an operating lease liability of $1.28 million. 

The table below presents the weighted average remaining lease term for operating leases and weighted average discount rate used in calculating operating lease right-of-use assets: