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 March 31, 2026 and 2025:

Other information related to operating and finance leases as of and for the three months ended March 31, 2026 and 2025 is as follows:

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

Principally all leases relate to real estate.

For the three months ended March 31, 2026, the Company incurred $2,074,660 of operating lease costs (2025 - $2,307,071), of which $962,217 (2025 - $1,016,521) was allocated to cost of goods sold and inventory.

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